Banking Code of the Republic of Belarus

October 25, 2000 No. 441-Z

[Amended as of June 4, 2015]

Adopted by the Chamber of Representatives on 3 October 2000
Approved by the Council of the Republic on 12 October 2000

TABLE OF CONTENTS

GENERAL PART

SECTION I. GENERAL PROVISIONS

CHAPTER 1. MAIN PROVISIONS (Articles 1 –11)

CHAPTER 2. BANKING ACTIVITIES (Articles 12 –18)

CHAPTER 3. RELATIONSHIPS BETWEEN SUBJECTS AND PARTICIPANTS OF BANK LEGAL RELATIONSHIP (Articles 19 –23)

SECTION II. THE NATIONAL BANK

CHAPTER 4. LEGAL STATUS, OBJECTIVES AND FUNCTIONS OF THE NATIONAL BANK (Articles 24 –36)

CHAPTER 5. SPECIFICS OF FUNCTIONING OF THE NATIONAL BANK (Articles 37 –51)

CHAPTER 6. OPERATIONS OF THE NATIONAL BANK (Articles 52 –57)

CHAPTER 7. STRUCTURE, GOVERNING BODY AND ORGANIZATIONS OF THE NATIONAL BANK (Articles 58 –69)

SECTION III. BANKS AND NON-BANK CREDIT AND FINANCIAL ORGANIZATIONS

CHAPTER 8. GENERAL PROVISIONS RELATING TO BANKS (Articles 70 –76)

CHAPTER 9. STATE REGISTRATION OF BANKS (Articles 77 –84)

CHAPTER 10. SEPARATE AND STRUCTURAL DIVISIONS OF THE BANK (Articles 85 –88)

CHAPTER 11. SPECIFIC FEATURS OF ESTABLISHMENT OF A BANK FOUNDER (SHAREHOLDERS) OF WHICH ARE FOREIGN INVESTORS. REPRESENTATIVE OFFICE OF A FOREIGN BANK IN THE TERRITORY OF THE REPUBLIC OF BELARUS. SPECIFIC FEATURES OF ESTABLISHMENT OF SUBSIDIARY BANKS, OF OPENING AFFILIATES AND REPRESENTATIVE OFFICES OF RESIDENT BANKS OUTSIDE THE REPUBLIC OF BELARUS PARTICIPATION OF BANKS-RESIDENTS IN AUTHORIZED FUNDS OF FOREIGN BANKS (Articles 89 –100)

CHAPTER 13. REORGANIZATION AND LIQUIDATION OF BANKS (Articles 101 –104)

CHAPTER 14. GENERAL PROVISIONS ABOUT NON-BANK CREDIT AND FINANCIAL ORGANIZATIONS (Articles 105 –108)

SECTION IV. ENSURING STABILITY OF BANKING ACTIVITIES LIABILITY OF SUBJECTS AND PARTICIPANTS OF BANKING RELATIONS

CHAPTER 15. ENSURING STABILITY OF BANKING ACTIVITIES PROTECTION OF RIGHTS AND INTERESTS OF DEPOSITORS AND OTHER CREDITORS OF BANKS (Articles 109 –126)

CHAPTER 16. IMPOSING ARREST AND LEVYING EXECUTION ON MONETARY MEANS AND OTHER PROPERTY HELD IN BANKS. SUSPENSION OF OPERATIONS ON ACCOUNTS IN BANK (Articles 127 –132)

CHAPTER 17. LIABILITY OF SUBJECTS AND PARTICIPANTS OF BANKING RELATIONS (Articles 133 –136)

SPECIAL PART

SECTION V. ACTIVE BANKING OPERATIONS

CHAPTER 18. BANK CREDIT (Articles 137 –152)

CHAPTER 19. CONTRACT OF FINANCING AGAINST ASSIGNMENT OF MONETARY CLAIM (FACTORING CONTRACT) (Articles 153 –163)

CHAPTER 20. BANK GUARANTEE. SURETYSHIP (Articles 164 –178)

SECTION VI. PASSIVE BANKING OPERATIONS

CHAPTER 21. BANK DEPOSIT (Articles 179 –196)

CHAPTER 22. BANK ACCOUNT (Articles 197 –212)

CHAPTER 23. TRUST MANAGEMENT OF MONETARY MEANS (Articles 213 –230)

SECTION VII. INTERMEDIARY BANKING OPERATIONS

CHAPTER 24. SETTLEMENTS (Articles 231 –275)

CHAPTER 25. FOREIGN CURRENCY EXCHANGE OPERATIONS (Articles 276 –277)

CHAPTER 26. BANK SAFEKEEPING. TEMPORARY USE OF BANK STRONGBOX (Articles 278 –286)

CHAPTER 27. COLLECTION AND CARRIAGE OF CASH MONETARY MEANS, PAYMENT INSTRUCTIONS, PRECIOUS METALS AND PRECIOUS STONES AND OTHER VALUABLES (Articles 287 –290)

GENERAL PART

SECTION I
GENERAL PROVISIONS

CHAPTER 1
MAIN PROVISIONS

Article 1. Relations regulated by banking legislation

Relations regulated by banking legislation constitute a system of economic social relations to mobilize and use temporarily disengaged monetary means. Banking legislation determines principles of banking activity and legal status of subjects of bank legal relationships, regulates relations between them, and sets forth procedures for the establishment, functioning, reorganization, and liquidation of banks and non-bank credit and financial organizations.

Property relations as well as non-property relations associated therewith which arise when carrying out banking activity are also regulated by civil legislation, having regard to the specific provisions stipulated by this Code.

Relations connected with the use of securities, budgetary and foreign currency means as well as other relations connected with the activity of banks and non-bank credit and financial organizations are regulated by special legislation unless otherwise stipulated by this Code.

Article 2. Banking legislation of the Republic of Belarus

Banking legislation of the Republic of Belarus is a system of normative legal acts that regulate relations arising when carrying out banking activity and establish the rights, duties and liability of subjects and participants of bank legal relationships.

Banking legislation acts include:

legislative acts of the Republic of Belarus;

administrative orders of the President of the Republic of Belarus of a normative nature;

resolutions of the Government of the Republic of Belarus;

normative legal acts of the National Bank of the Republic of Belarus (hereinafter – the “National Bank”); and

normative legal acts adopted by the National Bank jointly with the Government of the Republic of Belarus or with republican bodies of state administration on the basis of and in compliance with this Code and other legislative acts of the Republic of Belarus.

Article 3. Banking legislation and norms of international law

The Republic of Belarus recognizes the priority of generally recognized principles of international law and ensures the compliance of banking legislation therewith.

Norms of banking legislation contained in the treaties of the Republic of Belarus, entered into force, are an integral part of the banking legislation which is in force in the territory of the Republic of Belarus. They are to be applied directly, unless the treaty provides that a national normative legal act is to be adopted (issued) for the application of such norms, and have the force of a legal act whereby the consent of the Republic of Belarus to be bound by the treaty have been expressed.

Article 4. Fundamentals of monetary and credit policy of the Republic of Belarus

Monetary and credit policy of the Republic of Belarus is an integral part of the single state economic policy.

Fundamental Monetary and Credit Policy Guidelines of the Republic of Belarus that are annually approved by the President of the Republic of Belarus on proposal of the National Bank and the Government of the Republic of Belarus constitute the legal ground of monetary and credit policy of the Republic of Belarus.

Fundamental Monetary and Credit Policy Guidelines of the Republic of Belarus contain key parameters of monetary sector development, determine objectives, tasks, and priorities of state monetary and credit policy, and provide for a set of measures and mechanisms for their regulation and control which ensure their implementation.

Article 5. Financial and Credit System of the Republic of Belarus

The banking system of the Republic of Belarus is an integral part of the financial and credit system of the Republic of Belarus. The banking system of the Republic of Belarus is a two-tier system which includes the National Bank and other banks.

The financial and credit system of the Republic of Belarus includes, along with banks, non-bank credit and financial organizations.

Article 6. Subjects and participants of bank legal relationships

Subjects of bank legal relationship are the National Bank, banks, and non-bank credit and financial organizations.

The Republic of Belarus, its administrative-territorial units, including in the name of state bodies, as well as natural persons, individual entrepreneurs and legal persons may be participants of bank legal relationships unless otherwise stipulated by this Code.

The rules of this Code applied to natural persons apply also to individual entrepreneurs, unless otherwise stipulated by this Code.

Article 7. The National Bank

The National Bank is the central bank and a state body of the Republic of Belarus. The National Bank regulates credit relations and money circulation, determines settlement procedures. The National Bank has the exclusive right to emit money and exercise other functions stipulated by this Code and other legislative acts of the Republic of Belarus.

Article 8. Bank

A bank is a legal person that has the exclusive right to perform the following banking operations, combined:

attracting monetary means of natural persons in accounts and/or deposits;

placement of attracted monetary means specified in indent two of this part in the own name and at the own costs on the conditions of repayment, interest payment, and maturity;

to open and operate bank accounts for natural and/or legal persons.

A bank is entitled to perform other banking operations and engage in other kinds of activities stipulated in Article 14 of this Code.

Article 9. Non-bank credit and financial organization

A non-bank credit and financial organization is a legal person which has the right to perform certain banking operations and activities stipulated in Article 14 of this Code, except for the combined performance of the following banking operations:

to accept monetary means of natural persons in accounts and/or deposits;

placement of attracted monetary means specified in indent two of this part in the own name and at the own costs on the conditions of repayment, interest payment, and maturity;

to open and to operate bank accounts for natural and/or legal persons.

Permissible combinations of banking operations which may be performed by non-bank credit and financial organizations are prescribed by the National Bank.

Dispositions stipulated for banks apply when non-bank credit and financial organizations are created, reorganized, operated and liquidated, unless otherwise established by this Code and other banking legislation.

Article 10. Objects of bank legal relationships

The objects of bank legal relationship are money (foreign currency), securities, precious metals and precious stones and other valuables.

Article 11. Currency of monetary obligations

Monetary obligations in the territory of the Republic of Belarus must be expressed in the official monetary unit of the Republic of Belarus (Belarusian ruble).

A monetary obligation may provide that it is to be fulfilled in the official monetary unit of the Republic of Belarus in the amount equivalent to a certain sum in a foreign currency or in conventional (calculated) monetary units. In that case the amount payable in the official monetary unit of the Republic of Belarus is determined at the official exchange rate of the relevant currency or of conventional (calculated) monetary units on the date of payment unless a different exchange rate or a different date for determining the exchange rate is stipulated by the legislation of the Republic of Belarus or by agreement between the parties.

The use of foreign currency and also securities and payment instructions in foreign currency in monetary obligations in the territory of the Republic of Belarus is allowed in cases, in the order and on conditions determined by legislation of the Republic of Belarus.

CHAPTER 2
BANKING ACTIVITY

Article 12. Banking activities

Banking activity is a combination of banking operations performed by banks and non-bank credit and financial organizations aimed at obtaining profit.

Article 13. Principles of banking activity

The fundamental principles of banking activity are:

obligatory obtainment by banks and non-bank credit and financial organizations of a special permit (license) for carrying out banking operations (hereinafter – license to carry out banking activities);

independence of banks and non-bank credit and financial organizations in their activities, non-interference of state authorities in their functions, except for the cases stipulated by legislative acts of the Republic of Belarus;

delimitation of responsibilities between banks, non-bank credit and financial organizations and the state;

obligatory compliance with economic standards prescribed by the National Bank for the purpose of maintaining stability and sustainability of the banking system of the Republic of Belarus;

ensuring the right of natural and legal persons to select a bank or a non-bank credit and financial organization;

ensuring bank secrecy of transactions, accounts, and deposits of customers; and

ensuring the repayment of monetary means to depositors.

Article 14. Banking operations. Other activities performed by banks and non-bank credit and financial organizations

Banking operations are:

attracting monetary means of natural persons in accounts and/or deposits;

placement of attracted monetary means specified in indent two of this part in the own name and at the own costs on the conditions of repayment, interest payment, and maturity;

opening and operating accounts of natural and/or legal persons;

opening and operating bullion accounts;

settlement and/or cash services to natural and legal persons, including correspondent banks;

currency exchange transactions;

sale of precious metals and/or precious stones in the cases stipulated by the National Bank;

acceptance and allocation of precious metals and/or precious stones in deposits for natural and/or legal bodies;

issuing bank guarantees;

trust management of a fund of bank management on the basis of a contract of trust management of bank management fund;

trust management of monetary means under a contract of trust management of monetary means;

collection of cash monetary means, payment instructions, precious metals and precious stones and other valuables;

issuance (emission) of bank payment cards;

issuance (emission) of electronic money;

issuance of securities confirming acceptance of monetary means in deposits and placement thereof in the accounts;

financing against monetary claim assignment (factoring);

providing natural and legal persons with special premises or strongboxes located therein for bank safekeeping of documents and valuables (monetary means, securities, precious metals and precious stones, etc.);

carriage of cash monetary means, payment instructions, precious metals and precious stones and other valuables between banks and non-bank credit and financial organizations, their separate and structural divisions, and delivery of such valuables to customers of banks and non-bank credit and financial organizations.

Rules of and procedures for banking operations are established by the National Bank.

Specific regulations for carrying out banking operations involving precious metals and precious stones are stipulated by special legislation.

In addition to banking operations referred to in part one of this Article, banks and non-bank credit and financial organizations are entitled, in accordance with legislation of the Republic of Belarus, to perform:

provision of suretyship for third persons which stipulates the fulfilment of obligations in a monetary form;

trust management of precious metals and/or precious stones;

operations (transactions) with precious metals and/or precious stones;

leasing;

counselling and information services;

issuance (emission), sale, purchase of securities and other operations with securities;

offset of mutual monetary and other financial claims and obligations and determination of net positions (clearing);

operations in the Republic of Belarus and outside its limits with commemorative banknotes, commemorative and bullion (investment) coins which are legal means of payment of the Republic of Belarus, at a price not lower than the nominal;

other activities provided by the legislation of the Republic of Belarus, carried out for own needs and/or necessary to ensure the carrying out of banking operations, with the exception of carrying out the insurance business as insurers.

Article 15. Types of banking operations

Banking operations may be active, passive, and intermediary.

Active banking operations are deemed to be operations aimed at providing monetary means, precious metals and/or precious stones by banks and non-bank credit and financial organizations.

Passive banking operations are deemed to be operations aimed at attracting monetary means, precious metals and/or precious stones by banks and non-bank credit and financial organizations.

Intermediary banking operations are deemed to be operations facilitating banking activities of banks and non-bank credit and financial organizations.

Article 16. Specific features of determination of time limits in banking activity

A time-limit in banking activity is determined by a calendar date or by the expiration of a time period which is calculated in years, months, weeks, and calendar, working or banking days, hours. The time-limit may also be determined by the indication to an event that will inevitably occur.

A time-limit in one banking day means a part of the working day set by the bank for performing certain actions.

The time-limit calculated in banking days does not include days which, in accordance with legislation of the Republic of Belarus or standard banking practice, are not working days. If the last day of the time-limit is a non-working day, the next working day shall be deemed the day of the expiration of the time-limit.

If an action is to be performed within a time-limit calculated in banking days, such action must be performed before the expiration of the last banking day of the time-limit.

If payment instructions are delivered to the bank after the expiration of the time set by the bank for the execution of the said payment instructions, such payment instructions are deemed to be delivered on the next banking day.

Article 17. Specific feature for determination of limitation periods when carrying out banking activity

The limitation period for the claims of banks and non-bank credit and financial organizations to borrowers due to non-fulfilment (undue fulfilment) of terms and conditions of credit contracts is five years.

The limitation period does not cover depositors’ claims to a bank or a non-bank credit and financial organization for the repayment of deposits.

Article 18. State regulation of banking activities

The state regulation of banking activity is carried out by the National Bank through:

state registration of banks and non-bank credit and financial organizations;

licensing of banking activities;

establishing bans and restrictions for banks and non-bank credit and financial organizations;

control over compliance of banks and non-bank credit and financial organizations with banking legislation;

bank supervision;

application of measures of supervisory reaction established by this Code;

adoption (issue) of normative legal acts;

exercising of other functions in accordance with the legislative acts of the Republic of Belarus.

CHAPTER 3
RELATIONSHIPS BETWEEN SUBJECTS AND PARTICIPANTS OF BANK LEGAL RELATIONSHIP

Article 19. Relationships between banks, non-bank credit and financial organizations and state

Banks and non-bank credit and financial organizations are not liable for obligations of the state. The state is not liable for obligations of banks and non-bank credit and financial organizations, except for the cases where the state has assumed such obligations or unless otherwise stipulated by legislation of the Republic of Belarus.

Banks and non-bank credit and financial organizations are independent in their activities. The state, its bodies, and officials may interfere in the activities of banks and non-bank credit and financial organizations only within the limits established by the Constitution of the Republic of Belarus and legislative acts of the Republic of Belarus adopted in compliance with the Constitution.

Control over the performance of cash operations by customers, as well as functions of a foreign currency control agent may be imposed on banks and non-bank credit and financial organizations, in accordance with legislative acts of the Republic of Belarus.

It is not allowed to impose on banks and non-bank credit and financial organizations, unless otherwise stipulated by the President of the Republic of Belarus, functions of control over:

performance of licensed activities by customers;

timeliness and adequacy of payments by customers of taxes, dues (duties) and other payments into the budget, state non-budgetary funds, and also of insurance fees;

observance by customers of time-limits for payment of wages/salaries and rates thereof; and

observance by customers and other persons of terms and conditions of contracts concluded between them.

The National Bank and other state bodies are not entitled to require banks and non-bank credit and financial organizations to exercise control and other functions inappropriate for them.

Banks may perform operations with budgetary means and perform settlements therewith, and ensure the intended use of budgetary means and means of state non-budgetary funds allocated for republican and local (regional) programs.

Article 20. Relationships between banks and/or non-bank credit and financial organizations

Banks and/or non-bank credit and financial organizations may accept from each other and allocate with each other means in the form of deposits and credits, effect settlements via correspondent accounts opened with each other, and perform other operations specified in licenses to carry out banking activities.

Article 21. Participation of banks and non-bank credit and financial organizations in associations

Banks and non-bank credit and financial organizations may establish unions and associations that are non-profit organizations.

Establishment and state registration of unions and associations of banks and non-bank credit and financial organizations are carried out in the order established by legislation of the Republic of Belarus.

Article 22. Relationships of banks and non-bank credit and financial organizations with customers

Relations of banks and non-bank credit and financial organizations with customers are based on banking legislation and contracts concluded.

Banks and non-bank credit and financial organizations determine independently the terms and conditions of transactions that do not contradict legislation of the Republic of Belarus. Unless otherwise stipulated by rules effective in banks and non-bank credit and financial organizations, contracts concluded between a bank or non-bank credit and financial organization and a customer are public contracts or contracts of adhesion.

The National Bank is entitled to prescribe for banks and non-bank credit and financial organizations obligatory terms and conditions for conclusion of transactions with customers.

The National Bank, banks, and non-bank credit and financial organizations shall suspend bank operations and/or refuse to carry out them, refuse to connect customer to systems of distance bank servicing, unilaterally terminate or suspend rendering services by means of such systems, unilaterally refuse to fulfil contracts on performing bank operations in writing, refuse to conclude contracts on  performing bank operations in writing in the instances provided by legislative acts of the Republic of Belarus on prevention of legalization of profits received from crime and financing of terrorist activity and financing proliferation of arms of mass destruction.

When carrying out banking activities, a bank and a non-bank credit and financial organization are obliged, at a customer’s request, to present to the customer, for the insight, the license to carry out banking activities and information on its financial standing and results of performance of respectively that bank and that non-bank credit and financial organization in the volume and in the order established by the National Bank.

Article 23. Right of banks and non-bank credit and financial organizations to judicial protection of their violated or challenged rights and legitimate interests

Banks and non-bank credit and financial organizations have the right to judicial protection of their violated or challenged rights and legitimate interests, including the right to appeal in court actions (omissions) of the National Bank and other state bodies.

SECTION II
THE NATIONAL BANK

CHAPTER 4
LEGAL STATUS, OBJECTIVES AND FUNCTIONS OF THE NATIONAL BANK

Article 24. The National Bank as the central bank of the Republic of Belarus

The National Bank is the central bank and a state body of the Republic of Belarus and operates exclusively in the interests of the Republic of Belarus.

The National Bank carries out its activities in accordance with the Constitution of the Republic of Belarus, this Code, laws of the Republic of Belarus, normative legal acts of the President of the Republic of Belarus and is independent in its activities.

The National Bank is accountable to the President of the Republic of Belarus.

The National Bank's accountability to the President of the Republic of Belarus means that:

the President of the Republic of Belarus approves the Statute of the National Bank as well as changes and/or additions thereto;

the President of the Republic of Belarus appoints, with the consent of the Council of the Republic of the National Assembly of the Republic of Belarus, the Chairman and members of the Board of the National Bank and removes them, with the notification of the Council of the Republic of the National Assembly of the Republic of Belarus, from office;

the President of the Republic of Belarus designates an audit organization for auditing annual bookkeeping (financial) statements of the National Bank;

the President of the Republic of Belarus approves the annual report of the National Bank.

The National Bank is a legal person and has the seal with the image of the State Emblem of the Republic of Belarus and the inscription «Национальный банк Республики Беларусь» [National Bank of the Republic of Belarus]. The National Bank location is the City of Minsk.

The objectives and principles of activity of the National Bank as well as its rights, are determined by the Constitution of the Republic of Belarus, this Code, other legislative acts of the Republic of Belarus.

Article 25. Main objectives of activities of the National Bank

The main objectives of Activities of the National Bank are:

protecting the Belarusian ruble and ensuring its stability, including its purchasing power and the rate of exchange to foreign currencies;

ensuring stability of the banking system of the Republic of Belarus;

ensuring efficient, reliable, and secure functioning of the payment system.

Profit making is not the main objective of the National Bank.

Article 26. Functions of the National Bank

The National Bank exercises the following functions:

develops Fundamental Monetary and Credit Policy Guidelines of the Republic of Belarus and, in concert with the Government of the Republic of Belarus, ensure the implementation of the single monetary and credit policy of the Republic of Belarus in the order established by this Code and by other legislative acts of the Republic of Belarus;

performs operations necessary to attain the main objectives of the National Bank;

is the lender of last resort for banks, providing refinancing thereto;

emits money;

carries out the issuance (emission) of securities of the National Bank ;

forms the gold reserve and precious metals fund of the State Fund of Precious Metals and Precious Stones of the Republic of Belarus to and carry out operative administration thereof within the limits of its competence;

creates, upon consent of the President of the Republic of Belarus, gold and foreign currency reserves, and manages them within its competence;

carries out currency regulation and control in accordance with the legislation of the Republic of Belarus, including issues permits necessary for goals of foreign currency regulation in the order established by it;

regulates credit relations;

regulates and organizes monetary circulation;

exercises the functions of a finance agent of the Government of the Republic of Belarus and local executive and administrative bodies on the issues of execution of the republican and local budgets;

establishes rules and procedures for carrying out banking operations;

gives its consent, in the order established by it, to carrying out by banks and non-bank credit and financial organizations of security operations in the cases stipulated by legislations of the Republic of Belarus;

agrees, in the order established by it, the issuance of securities of banks and non-bank credit and financial organizations in the cases stipulated by legislation of the Republic of Belarus;

organizes activities of banks and non-bank credit and financial organizations on the issuance and circulation of bills of exchange (promissory notes), unless otherwise provided by the President of the Republic of Belarus;

carries out depositary activity in the order provided by the legislation of the Republic of Belarus;

establishes requirements for banks and non-bank credit and financial organizations on their performing operations with forward and future contracts, options and other financial instruments;

regulates relations arising at combination of monetary means and/or securities into the fund of bank management on the basis of contracts of trust management by the bank management fund, and also while that fund is functioning, including determining material conditons, order of conclusion of mentioned contracts, rights, duties and liability of parties;

determines the order of performance settlements in the Republic of Belarus in cash and cashless forms, including the amount, settlements in cash monetary means in Belarusian rubles between legal persons, their separate divisions, individual entrepreneurs;

organizes the collection and carriage of cash monetary means, payment instructions, precious metals and precious stones and other valuables;

carries out settlement and/or cash servicing of the Government of the Republic of Belarus, of organizations the list of which is determined in the Statute of the National Bank, and other organizations in the cases stipulated by legislative acts of the Republic of Belarus;

establishes the order of opening bullion accounts and the conditions for their operating in banks and non-bank credit and financial organizations in the territory of the Republic of Belarus, as well as the terms for opening of such accounts by residents in banks and other credit organizations outside its territory. For the purposes of this Code, the term ‘resident’ has the meaning determined by Clause 7 of Article 1 of the Law of the Republic of Belarus of July 22, 2003 “On currency regulation and currency control”;

determines the order of carrying out monetary transfers through systems of such transfers, requests from banks - participants of monetary transfer systems rules of functioning of such systems, contracts on participation therein, other information on activity of monetary transfer systems, performs collection, systematization, analysis of information about send and paid monetary transfers, conditions and methods of their performance, other necessary information in accordance with treaties of the Republic of Belarus;

regulates prices for precious metals and precious stones when carrying out banking operations;

regulates activities of banks and non-bank credit and financial organizations;

carries out bank supervision;

establishes in accordance with this Code and other legislative acts of the Republic of Belarus the order of the state registration of banks and non-bank credit financial organizations and performs their state registration;

carries out licensing of banking activities;

carries out the monitoring of financial stability;

organizes the functioning of the payment system of the Republic of Belarus and its carries out its supervision, ensures functioning of the automated system of interbank settlements;

carries out formation and development of the single settlement and information space, ensures functioning of the automated information system of the single settlement and information space (hereinafter -AIS Settlement), determines the order of functioning of the single settlement and information space and AIS Settlement, including sets objectives, tasks and principles of the single settlement and information space, rights and duties of its participants, the order of their connection to AIS Settlement;

ensures application of the single state policy in the sphere of bookkeeping (financial) statements for the National Bank, banks and non-bank credit and financial organizations, consolidated bookkeeping (financial) statements for bank groups, bank holdings;

carries out the general methodological guidance of the accounting and bookkeeping (financial) statements  of the National Bank, banks and non-bank credit and financial organizations, consolidated bookkeeping (financial) statements in bank groups, bank holdings, other powers in the sphere of accounting and bookkeeping (financial) statements  in accordance with legislative acts of the Republic of Belarus;

develops and approves national standards of accounting and bookkeeping (financial) statements and other normative legal acts on accounting and bookkeeping (financial) statements, including those determining the rules of accounting of performed operations and formation of individual and consolidated bookkeeping (financial) statements, obligatory for implementation by the National bank, banks and non-bank credit and financial organizations, bank groups, bank holdings (with the exception of individual bookkeeping (financial) statements of head organizations of bank holdings not being banks, non-bank credit and financial organizations);

establishes procedures for banks and non-bank credit and financial organizations on drawing up reports on their activity and forms thereof;

forms the statistics of the payment balance, international investment position and external debt of the bank system, bank statistics, statistics of the financial market, including of the internal foreign-exchange market and cash circulation, as well as the statistics of the financial stability and publishes statistic data on the official site of the National bank in the global computer network Internet;

performs the analysis of the payment balance, participates in the development of the payment balance forecast by the bodies of state administration;

carries out the analysis and the forecasting of the tendencies in the monetary and credit sphere and publishes the relevant analytical materials on the official site of the National bank in the global computer network Internet;

carries out the monitoring of the organizations, based on the performance of regular polls in order to find the tendencies of economic processes, their analysis and forecast in collaboration with the tools of the monetary and credit policy;

implements the state policy in the sphere of protection activity of banks and non-bank credit and financial organizations;

establishes for banks and non-bank credit and financial organizations obligatory requirements on the safe functioning of the objects and safety of rendering of bank services, protection of information resources and information, dissemination and/or provision of which is limited, unless otherwise provided by the legislative acts of the Republic of Belarus;

establishes the requirements for the technical abilities of banks, non-bank credit and financial organizations, their affiliates, structural divisions and remote workplaces for the performance of bank operations, carries out the technical norm setting and standardization in the field of banking activity;

exercises control over data security and protection of information resources in banks and non-bank credit and financial organizations, gives consent to candidatures of heads of security and economic security services, of other structural divisions with similar functions (if available) of banks and non-bank credit and financial organizations and determines the order for giving such consent;

establishes the requirements for the reproduction of images of banknotes and coins ;

forms credit histories on the basis of data on credit transactions presented by the sources of formation of credit histories and provides credit reports to the users of credit histories and subjects of credit histories;

concludes agreements with central (national) banks and credit organizations of foreign states;

carries out, in accordance with legislative acts of the Republic of Belarus, regulation of leasing activity and control over observance of legislation of the Republic of Belarus on leasing activity;

organizes work on raising financial literacy of the population;

carries out regulation of relationships arising upon rendering and attracting of microloans by microfinancial organisations;

exercises control over compliance of microfinancial organisations with the legislation of the Republic Belarus regulating the order of granting and attracting of microloans, including by performing inspections at the place of location of the National Bank on the basis of studying documents, statements and other information, received by it in accordance with legislation of the Republic of Belarus, without requesting other documents from microfinancial organizations (chamber inspections);

examines on the merits, in accordance with legislation of the Republic of Belarus on appeals of citizens and legal persons, appeals of consumers of services rendered by microfinancial organisations in relation to violation of rights of such consumers and sends prescriptions on termination of violation of consumers rights, binding for microfinancial organisations;

examines on the merits, in accordance with legislation of the Republic of Belarus on appeals of citizens and legal persons, appeals of consumers of services rendered by leasing organisations in relation to violation of rights of such consumers and sends prescriptions on termination of violation of consumers rights, binding for leasing organisations;

examines on the merits, in accordance with legislation of the Republic of Belarus on appeals of citizens and legal persons, appeals of consumers of services rendered by banks and non-bank credit and financial organizations when carrying out banking operations in relation to violation of rights of such consumers and takes measures on protection of said rights in the order established by it;

determines the order of selling by the banks of commemorative banknotes, commemorative and bullion (investment) coins being legal means of payment of the Republic of Belarus, and also of their casing;  

determines the order of performing by the banks of authenticity of banknotes upon application of a natural person;

ensures functioning of the system of centralized exchange of interbank correspondence;

determines the order of forming by the banks of required reserves fund allocated in the National Bank;

determines the order of  carrying out by banks, non-bank credit and financial organizations, the open joint-stock company "Development Bank of the Republic of Belarus", leasing and microfinancial organizations of measures on prevention of legalization of profits received from crime and financing of terrorist activity and financing proliferation of arms of mass destruction;

determines for the National Bank, banks and non-bank credit and financial organizations the order of using blank forms of securities and documents with with certain level of protection, and also of documents with certain level of protection;

exercises other functions stipulated by this Code and other legislative acts of the Republic of Belarus.

Article 27. Main monetary and credit policy guidelines of the Republic of Belarus

The National Bank, in concert with the Government of the Republic of Belarus, shall, annually before October 1 of the current year, submit the Fundamental Monetary and Credit Policy Guidelines of the Republic of Belarus for the forthcoming year to the President of the Republic of Belarus.

The Fundamental Monetary and Credit Policy Guidelines of the Republic of Belarus for the forthcoming year include:

brief characteristics of the economic situation of the Republic of Belarus;

most important parameters of the social and economic development forecast of the Republic of Belarus for the forthcoming year, including forecast for the indices of the balance of payments of the Republic of Belarus for the forthcoming year;

principal parameters and instruments of monetary and credit policy of the Republic of Belarus for the forthcoming year;

estimates and analysis of the fulfilment of main parameters and instruments of monetary and credit policy of the Republic of Belarus for the current year;

arrangements of the National Bank for the forthcoming year on the improvement of the banking system of the Republic of Belarus, banking control, financial markets and payment system of the Republic of Belarus.

The National Bank informs, on a quarterly basis, the President of the Republic of Belarus and the Government of the Republic of Belarus about the volume of money emission and about the fulfilment of the Fundamental Monetary and Credit Policy Guidelines of the Republic of Belarus.

The National Bank informs, on a quarterly basis, the President of the Republic of Belarus about the volume of gold and currency reserves to be created in accordance with objectives and tasks determined in the Fundamental Monetary and Credit Policy Guidelines of the Republic of Belarus.

Article 28. Rights of the National Bank to issue money

The National Bank has the exclusive right to issue money.

The emission of money is carried out by the National Bank in the form of release in the circulation of cashless and cash money. Cash money is released in the circulation in the form of banknotes and coins.

The emission of money is carried out by the National Bank through short-term (up to one year) refinancing of banks in order to maintain liquidity of the banking system of the Republic of Belarus and stability of monetary circulation, by purchasing Government securities circulating in the money market of state securities, and by performing operations in the domestic and foreign money markets aimed to increase the gold and foreign currency reserves. The emission of money for long-term (over one year) refinancing of banks is prohibited.

The National Bank issues banknotes and coins in the form of releasing them in circulation by selling to the banks, by purchasing foreign currency and other currency valuables from legal and natural persons in order to ensure stable cash money circulation, as well as in other cases relating to the attainment of the main objectives of the National Bank.

The overall volume of the emission of cashless money, banknotes and coins are determined and regulated exclusively by the National Bank in accordance with objectives and tasks determined in the Fundamental Monetary and Credit Policy Guidelines of the Republic of Belarus.

The National Bank emits the Belarusian ruble. Restrictions of the circulation of the Belarusian rouble in the territory of the Republic of Belarus is not allowed. The issuance in the circulation of other monetary units in the territory of the Republic of Belarus is prohibited

Article 29. Rights of the National Bank to organize the circulation of banknotes and coins in the territory of the Republic of Belarus

The National Bank determines the face value (denomination), design, levels of protection and other characteristics of banknotes and coins emitted in the circulation, publish cash money description in the official national printed mass media.

The National Bank ensures printing of banknotes, stamping of coins, safekeeping of non-emitted banknotes and coins, as well as storing and, if necessary, confirmation of authenticity of banknotes and coins, destruction of original and printing plates, plaster models and master coining instruments, dies and banknotes and coins retired from the circulation.

Banknotes and coins issued in circulation by the National Bank are the only legal means of payment in the territory of the Republic of Belarus, except for the cases stipulated by legislation of the Republic of Belarus.

Banknotes and coins issued in circulation by the National Bank constitute an unconditional liability of the National Bank and are secured by all its assets, and must be accepted at face value in all kinds of payments, and for placement on accounts and on deposit, and for transfers in the whole territory of the Republic of Belarus.

The National Bank has the exclusive right to retire issued banknotes and coins from circulation.

Banknotes and coins put in circulation by the National Bank may not be declared invalid (not being legal means of payment), unless a reasonably prolonged period for their exchange for new banknotes and coins has been established. The period for retiring banknotes and coins from circulation may not be less than one year and more than ten years. In addition to that, it is not allowed in introduce any restrictions on amounts or subjects of exchange.

Decision on exchange of banknotes and coins that have been put in circulation by the National Bank for banknotes and coins of a new specimen is to be taken by the President of the Republic of Belarus.

The National Bank must notify preliminary the Government of the Republic of Belarus about putting in circulation of new banknotes and coins, except for commemorative banknotes and coins.

The National Bank carries out exchange of specimens of banknotes and coins (including commemorative banknotes and coins) with central (national) banks of foreign states.

The National Bank shall exchange worn-out banknotes and damaged banknotes and coins without restrictions in compliance with regulations established by the National Bank.

The National Bank forms and manages reserve fund of banknotes and coins.

The National Bank has the right to emit, as collectibles, commemorative banknotes and coins as well as bullion (investment) coins made of precious and non-precious metals.

Commemorative banknotes as well as commemorative and bullion (investment) coins may circulate both as legal means of payment and collectibles at value other than the face value.

The National Bank is entitled to carry out exportation from the Republic of Belarus of commemorative and bullion (investment) without permit, and the exportation thereof for the sale in the international market, without export license.

Article 30. Rights of the National Bank in the sphere of monetary circulation

The National Bank determines, in accordance with legislation of the Republic of Belarus in the sphere of monetary circulation:

procedure for performing cash operations, procedure for bank operations with cash money, forms of reporting about bank operations with cash money and time-limits for the presentation thereof;

procedure, including the amount, of cash settlements in Belarusian rubles between legal persons, their separate divisions, individual entrepreneurs;

rules for storing, collection, carriage of cash money, payment instructions, precious metals and precious stones and other valuables;

rules for performing emission and treasury operations;

rules for determining the features of fitness of cash money for use in payments, rules for exchange of worn-out banknotes and damaged banknotes and coins, as well as the procedure for the destruction thereof.

Article 31. Rights of the National Bank in the sphere of credit relations

In sphere of credit relations, the National Bank establishes:

a system for bank refinancing;

rate of refinancing and other interest rates for the operations of the National Bank;

volume of bank refinancing;

normative standards for obligatory reserves to be deposited with the National Bank (reserve requirements.

The National Bank regulates the total volume of credit to be extended by the National Bank in accordance with Fundamental Monetary and Credit Policy Guidelines of the Republic of Belarus.

Bank refinancing means provision of banks by the National Bank with monetary means in Belarusian rubles on the conditions of repayment and interest payment.

The refinancing rate is a rate of the National Bank being the basic instrument of regulation of the level of interest rates in the monetary market and serving as a base for establishment of the interest rates on operations of providing the liquidity to banks.

Forms, procedure and conditions of refinancing are determined by the National Bank.

To regulate the money market and credit resources market, the National Bank establishes the amounts of interest rates for its own operations and in exceptional cases – permissible (maximum and/or minimum) amounts of interest rates on bank operations with monetary means of natural and/or legal persons.

Article 32. Rights of the National Bank concerning management of functioning of the payment system of the Republic of Belarus and its supervision

The National Bank carries out the management of functioning of the payment system of the Republic of Belarus and the supervision of the payment system through establishing the rules for making payments, tariff policy, liquidity management, as well as through collection, accumulation and analysis of indices characterizing the condition of the payment system of the Republic of Belarus.

The National Bank determines the rules, time-limits and standards for making settlements in cash and cashless forms and the liability for the violation thereof.

The National Bank maintains a central archive of interbank settlements data of the National Bank and performs documentary synchronization of the archives of banks on interbank settlements in the order established by the National Bank. The National Bank is entitled to use the archive for statistical and other processing, as well as for confirmation of the operations performed while carrying out interbank settlements, storage of electronic documents on interbank settlements of banks.

Article 33. Rights of the National Banks in the sphere of foreign currency regulation and currency control

In the sphere of foreign currency regulations and control, the National Bank:

establishes official exchange rates of the Belarusian ruble in relation to other currencies;

regulates circulation of currency valuables in the territory of the Republic of Belarus;

establishes procedures for opening, operating and regime of accounts of residents and non-residents in foreign currency in banks and non-bank credit and financial organizations. For the purposes of this Code the term ‘nonresident’ has the meaning determined by Clause 8 Article 1 of the Law of the Republic of Belarus ‘On currency regulations and currency control’;

establishes procedures for opening, operating and the regime of accounts of non-residents in banks and non-bank credit and financial organizations in Belarusian rubles;

establishes procedures for opening and operating, and regime of residents accounts in Belarusian rubles and foreign currency in banks and non-bank credit and financial organizations outside the Republic of Belarus;

establishes procedures for carrying out operations in Belarusian rubles between residents and non-residents;

establishes rules for exchange trading in foreign currencies;

establishes forms of reporting, accounting, and statistics of currency operations as well as procedures and deadlines for presenting information on foreign currency operations to the National Bank required for compiling the balance of payments of the Republic of Belarus and for other purposes;

controls foreign currency operations of banks and non-bank credit and financial organizations;

determines, in accordance with legislation of the Republic of Belarus, functions of currency control agents that may be imposed on banks and non-bank credit and financial organizations;

brings to responsibility of banks and non-bank credit and financial organizations for violating foreign currency legislation;

issues permits necessary for goals of foreign currency regulation in the order established by it;

exercises other powers established by this Code and other legislative acts of the Republic of Belarus.

Article 34. Rights of the National Bank in the sphere of bank supervision

The main objectives of the National Bank in the sphere of bank supervision are the maintenance of the stability of the bank system of the Republic of Belarus and the protection of interests of depositors and other creditors.

The National bank carries out the bank supervision by means of evaluation of the level of exposures of a bank, non-bank credit and financial organization, banking group and bank holding, their financial state and perspectives of functioning, quality of management, observance of license and prudential demands, established by this Code and the National Bank, evaluation of the compliance with the requirements of the legislation of the Republic of Belarus of founders, shareholders and other beneficiary owners of a bank, non-bank credit and financial organization, and their managing organs and members of the managing organs, organizational structure, sources of formation of the statutory fund, normative capital, and by means of adoption of measures aimed at the maintenance of safe functioning of a bank, non-bank credit and financial organization and/or stability of the bank system and/or protection of interests of depositors and other creditors of a bank, non-bank credit and financial organization.

For the purposes of this Code, the beneficiary owner of a bank, non-bank credit and financial organization means a state, organization or natural person, which directly or indirectly (through other natural persons and/or other organizations) own shares of the bank, non-bank credit and financial organization. The basis for the recognition of the existence of indirect (through other natural persons and/or other organizations) ownership of shares of a bank, non-bank credit and financial organization, order of the calculation of a portion of shares being in such ownership, as well as the criteria for the recognition of the state, organization or natural persons as a beneficiary owner are established by the National Bank.

The National Bank in the sphere of bank supervision establishes:

standards of safe operation and other requirements in accordance with this Code for banks, non-bank credit and financial organizations, banking groups and bank holdings and carries out the supervision of their observance;

requirements to the organization of corporate governance, risk management and internal control in banks, non-bank credit and financial organizations, bank groups and bank holdings;

requirements toward the founders, shareholders and other beneficiary owners of the bank, non-bank credit and financial organization, which own or will own shares of the bank, non-bank credit and financial organization in the amount equal or exceeding five percent (except for state bodies, legal persons and natural persons, acting on behalf of the Republic of Belarus or its administrative-territorial units);

qualification requirements and/or requirements to the business reputation, demanded from the independent directors and/or other members of the board of directors (supervisory board), with the exception of representatives of the state in governing bodies of the bank, members of collegiate executive body of the bank, non-bank credit and financial organization, heads and chief accountants of banks, non-bank credit and financial organizations, and their deputies, determines cases and order of the performance of the evaluation of compliance with the qualification requirements and/or requirements to the business reputation of these persons, as well as performs such evaluation;

requirements to the business plan of the created bank, non-bank credit and financial organization, strategic plan of development of the existing bank, non-bank credit and financial organization and evaluates compliance of the mentioned business plans and strategic plans of development with the established requirements in the order determined by the National Bank, as well as carries out the monitoring of their performance;

volume and content of report and other information necessary for the purposes of the bank supervision about the activities of the bank, non-bank credit and financial organization, order of its drawing up and submission to the National Bank;

volume and the procedure of disclosure of the information on the activity of bank, non-bank credit and financial organization, banking group and bank holding;

volume and content of the information received during the supervision, exchange of which with supervisory bodies of other states is carried out during the implementation of treaties of the Republic of Belarus.

The National bank, while carrying out the bank supervision, is entitled to:

request and receive the information from state bodies and other organizations, necessary to carry out bank supervision;

require the banks, non-bank credit and financial organizations, legal persons not being banks or non-bank credit and financial organizations and recognized in accordance with this Code making part of a bank holding, to submit reports and other information in accordance with this Code and normative legal acts of the National Bank;

perform, in accordance with the legislative acts of the Republic of Belarus, inspections of banks, non-bank credit and financial organizations, legal persons not being banks or non-bank credit and financial organizations and recognized in accordance with this Code making part of a bank holding;

engage with observance of the requirements of legislative acts of the Republic of Belarus an auditing organization, auditor carrying out activity as individual entrepreneur (hereinafter – auditor – individual entrepreneur) and workers of the organization that carries out the guaranteed compensation of bank deposits of natural persons, for performing the inspection;

act as the ordering consumer of auditor’s services in respect of the bank, non-bank credit and financial organization, legal persons not being banks or non-bank credit and financial organizations and recognized in accordance with this Code making part of a bank holding;

apply motivated estimation in the cases and under the procedure established by this Code and the National Bank.  The motivated estimation is deemed to be a formalized, logically reasoned professional opinion of workers of the National Bank which may be a ground for a decision in the sphere of bank supervision performance to be taken by the Board of the National Bank and officials of the National Bank authorized to take respective decisions;

take measures of supervisory reaction, including measures of influence provided for by this Code to the bank, non-bank credit and financial organization, leading organization of a bank group and/or bank holding, legal person not being banks or non-bank credit and financial organizations and recognized in accordance with this Code making part of a bank holding, persons that can influence directly and/or indirectly (through third parties) substantially the decisions taken by governing bodies of the bank and/or another legal person recognized making part of the bank group and/or bank holding;

exercises other powers established by this Code and other legislative acts of the Republic of Belarus.

Information received in the course of bank supervision performance is not to be disclosed, with the exception of the cases provided for by the legislative acts of the Republic of Belarus and treaties of the Republic of Belarus.

Article 35. Peculiarities of carrying out the supervision of bank activities on a consolidated basis

For carrying out the supervision of bank activities on a consolidated basis and complex evaluation of risks, the National Bank carries out supervision of activities of bank groups and bank holdings.

A bank group is recognized:

a complex of banks and/or non-bank credit and financial organizations where one of the legal persons exerts directly or indirectly (through third persons) a substantial influence on decisions taken by the governing bodies of another legal person;

a complex of banks and/or non-bank credit and financial organizations the decisions of which, taken by their governing bodies, could be substantially influenced by the same natural or legal person that is not recognized to be the head organization of this bank group, directly or indirectly (through third persons), in the form of control.

A bank holding is recognized:

a complex of banks and/or non-bank credit and financial organizations and other legal persons not being banks or non-bank credit and financial organizations where one of the legal persons exerts directly or indirectly (through third persons) a substantial influence on decisions taken by the bodies of management of another legal person;

a complex of banks and/or non-bank credit and financial organizations, and other legal persons not being banks or non-bank credit and financial organizations the decisions of which, taken by their governing bodies, could be substantially influenced by the same natural or legal person that is not recognized to be the head organization of this bank group, directly or indirectly (through third persons), in the form of control.

The head organization of a bank group is recognized a bank or non-bank credit and financial organization capable of exerting directly or indirectly (through third persons) a substantial influence on decisions taken by the governing bodies of another bank and/or non-bank credit and financial organization making part of the bank group.

The head organization of a bank holding is recognized a bank or non-bank credit and financial organization, or another legal person non being bank or non-bank credit and financial organization capable of exerting directly or indirectly (through third persons) a substantial influence on decisions taken by the governing bodies of another bank and/or non-bank credit and financial organization or another legal person making part of the bank holding.

The participant of a bank group is recognized to be a bank or non-bank credit and financial organization the decisions of which, taken by their governing bodies, could be substantially influenced by the head organization of this bank group, directly or indirectly (through third persons).

The participant of a bank holding is recognized to be a bank or non-bank credit and financial organization, and another legal person not being bank or non-bank credit and financial organization the decisions of which, taken by their governing bodies, could be substantially influenced by the head organization of this holding, directly or indirectly (through third persons).

The head organization of a bank group and/or bank holding, as well as participants of a bank group and/or bank holding are recognized as such in accordance with the methodology approved by the National Bank.

A bank and a non-bank credit and financial organization may be recognized to be a part of simultaneously one or several bank groups and/or one or several bank holdings. A legal person not being a bank or non-bank credit and financial organization may be recognized to be a part of simultaneously one or several bank groups and/or one or several bank holdings.

The influence is considered substantial if it enables to determine decisions (reject undesirable decisions) taken by governing bodies of a legal person, including to determine condition for its carrying out entrepreneurial activities, by virtue of at least one of the following grounds:

disposal of such a number of votes in any of the governing bodies of the legal person, which enables to determine decisions (reject undesirable decisions) taken by that body except for the decisions to be taken unanimously;

disposal of such a number of votes in an authorized governing body of the legal person, which enables to elect the one-man executive governing body of the legal person and/or more than half of members of the collegial executive body and/or of the board of directors (supervisory board);

disposal of powers to designate the one-man executive body of the legal person;

exercise of powers of the executive body of the legal person on the basis of a contract;

conclusion of a trust management contract concerning all property of the legal person or another contract according to which the rights on management of the activities of such legal person are acquired.

The substantial influence in the form of control is understood as substantial influence which permits due to the presence of at least one of the grounds provided for by part ten of this Article to determine the decisions taken by governing organs of a legal person.

Substantial influence in the form of control may be exercised by two or more individual entrepreneurs and/or commercial organizations on the basis of a contract on joint activity concluded between them (joint control).

Substantial influence exerted indirectly means substantial influence exerted on decisions taken by governing bodies of a legal person through third persons by virtue of at least one of the grounds provided for by part ten of this Article, as well as substantial influence exerted on the decisions taken by the governing bodies of a legal person by a natural person through another natural person, other natural persons due to the fact that mentioned natural persons have close ties of kinship or affinity.

The National Bank shall be informed in the established order:

by the head organization of a bank group and/or bank holding about its ability to exert directly or indirectly (through third persons) substantial influence on decisions taken by bodies of management of another legal person (other legal persons);

by a bank or non-bank credit and financial organization about the ability of another person to exert directly or indirectly (through third persons) substantial influence on decisions taken by their governing bodies;

by the head organization of a bank holding, not being a bank or non-bank credit and financial organization, about persons capable exert substantial influence directly on the decisions taken by its governing bodies;

by the head of a bank holding, not being a bank or non-bank credit and financial organization, about persons that transferred (received) the right to participate in the management of such head organization on the ground of a power of attorney and/or contract;

by a bank, non-bank credit and financial organization about persons that transferred (received) the right to participate in the management of a legal person not being a bank or non-bank credit and financial organization and capable to exert substantial influence directly or indirectly on the decisions taken by governing bodies of the bank, non-bank credit and financial organization, on the grounds of a power of attorney and/or contract.

For the purposes of carrying out the bank supervision on a consolidated basis, the National Bank:

approves the methodology of evaluation of a possibility to exert substantial influence by a bank, non-bank credit and financial organization, another legal person not being bank or non-bank credit and financial organization, directly or indirectly (though third persons) on the decisions taken by the governing bodies of another legal person, including in the form of control and their recognition as the head organization of a bank group and/or bank holding;

keeps records of head organizations and participants of bank groups, bank holdings, as well as other persons, exerting substantial influence on banks and/or non-bank credit and financial organizations;

establishes the volume and order of drawing up and submitting to the National Bank of a consolidated reports and other information important for carrying out the bank supervision about the activities of a bank groups and/or bank holding;

establishes order of submission by the participants of bank groups and/or bank holdings to head organizations of such groups and/or holdings of the information about its activities, necessary to draw up consolidated reports on the activities of a bank group and/or bank holding;

is entitled to consider, on the basis of the methodology developed by it, a bank, non-bank credit and financial organization, another legal person not being bank or non-bank credit and financial organization, as the leading organization of a bank group and/or bank holding and to require, in accordance with part two of Article 119 of this Code, its submitting to the National Bank of consolidated reports about the activities of the bank group and/or bank holding;

is entitled to require from the head organization of a bank group and/or bank holding to include into the consolidated reports on activities of a bank group and/or bank holding the information about the activities of a legal person whose decisions taken by its governing bodies such head organization can influence substantially directly or indirectly (through third persons), as well as to recognize such a legal person to be a part of such a bank group and/or bank holding.

The head organization of a bank group and/or bank holding is non entitled to disclose the received information about the activities of participants of a bank group and/or bank holding, with the exception of the cases provided by this Code and other legislative acts of the Republic of Belarus.

Article 351. Monitoring financial stability

The monitoring of financial stability is carried out by the National Bank in cooperation with the Government of the Republic of Belarus.

The objects of monitoring of financial stability are banks and non-bank credit and financial organizations, other financial intermediary, financial markets, payment system.

The monitoring of financial stability is understood to be observance of the objects of monitoring when they carry out their inherent activities and of their capability to carry out such an activity in case of destabilizing influence of interim and outer factors, as well as complex analysis of factors influencing the preservation of financial stability.

The results of the monitoring of financial stability shall be published by the National Bank in the established order on the official site of the National Bank in the global computer network Internet.

Article 36. Right of the National Bank to judicial recourse

The National Bank is entitled to bring lawsuits in the economic court of a regions (city of Minsk) on establishing the fact of nullity of transactions of banks and non-bank credit and financial organizations that have been concluded in violation of legislation of the Republic of Belarus, on recognition as invalid of voidable transactions of banks and non-bank credit and financial organizations in the instances provided by this Code and other legislative acts of the Republic of Belarus, and also on application of consequences of the invalidity of such transactions.

The National Bank is entitled to bring in the economic court of a region (city of Minsk) lawsuits to seek the liquidation of banks or non-bank credit and financial organizations on grounds stipulated by legislative acts of the Republic of Belarus.

CHAPTER 5
SPECIFICS OF FUNCTIONING OF THE NATIONAL BANK

Article 37. Interaction of the National Bank with the Government of the Republic of Belarus and other state bodies

The National Bank, in concert with the Government of the Republic of Belarus, ensures the application of a single monetary and credit policy of the Republic of Belarus.

The National Bank and the Government of the Republic of Belarus inform each other about the supposed actions which are of national importance, coordinate their activities, hold regular mutual consultations.

The Government of the Republic of Belarus, the National Statistical Committee of the Republic of Belarus, the Ministry of Finance of the Republic of Belarus, the Ministry of Economy of the Republic of Belarus, the Ministry on Taxes and Dues of the Republic of Belarus, Ministry of Internal Affairs of the Republic of Belarus, Ministry of Justice of the Republic of Belarus, the State Customs Committee of the Republic of Belarus, the Committee of State Control of the Republic of Belarus, and the National Bank shall furnish one another, in a mutually agreed manner and scope, on a gratuitous basis and in accordance with the legislation of the Republic of Belarus, with statistical, analytical and another information obtained while carrying out control and supervision functions.

The National Bank gives advice to the Ministry of Finance on matters of issuance (emission) of state securities and of redemption of national debt of the Republic of Belarus, having regard to their influence on the position of the bank system of the Republic of Belarus and priorities of the monetary and credit policy of the Republic of Belarus.

The National Bank is not liable for obligations of the Government of the Republic of Belarus. The Government of the Republic of Belarus is not liable for obligations of the National Bank, except for the cases stipulated by legislative acts of the Republic of Belarus.

The Chairman of the Board of the National Bank or one of his deputies on his behalf may take part in the meetings of the Presidium of the Council of Ministers of the Republic of Belarus in a consultative capacity.

Article 38. Submission of information to the National Bank

Banks, non-bank credit and financial organizations, and legal persons not being banks or non-bank credit and financial organizations and recognized in accordance with this Code to be a part of a bank holding, in the order established by the National Bank, as well as state bodies and other organizations, in the manner agreed with the National Bank, submit to the National Bank financial and economic information, as well as reference and analysis materials necessary for the National Bank to perform its functions.

The National Bank has the right to request and obtain on a gratuitous basis from the state bodies not mentioned in part three of Article 37 of this Code and from other organizations, in the manner agreed with them, information necessary for completion of financial, banking, and monetary and credit statistics and for the formation of the payment balance, including the international investment position and gross external debt.

The information received from state bodies and other organizations may not be disseminated without their consent.

The National Bank establishes for legal persons not being banks or non-bank credit or financial organizations and recognized in accordance with this Code to be a part of a bank holding, the procedure for submission of the information about their activities, necessary to draw up consolidated reports.

The National Bank maintains an integrated fund of supervisory and control information about banks and non-bank credit and financial organizations in the manner established by the National Bank.

The National Bank publishes analytical information, aggregate indicators of financial, banking, and monetary and credit statistics, payment balance, international investment position and gross external debt, exchanges the said information with central (national) banks of foreign states, provides it to international financial organizations.

Article 39. Normative legal acts of the National Bank

The National Bank, within its powers, adopts normative legal acts binding upon the republican bodies of state administration, local government and self-government authorities, all banks and non-bank credit and financial organizations, and other legal persons operating in the territory of the Republic of Belarus, as well as natural persons.

The National Bank is entitled to adopt (issue) normative legal acts jointly with the Government of the Republic of Belarus or the republican bodies of state administration.

Normative legal acts of the National Bank must comply with the legislative acts of the Republic of Belarus. In the case of a contradiction of a normative legal act of the National Bank with a legislative act of the Republic of Belarus, the latter shall be applied.

Article 40. Property of the National Bank

Property of the National Bank is in the ownership of the by the Republic of Belarus and is assigned to the National Bank on a right of operative administration.

The National Bank exercises its rights to possess, use, and dispose of the property of the National bank, including gold and foreign currency reserves, in accordance with the objectives of the National Bank and in the manner stipulated by its Statute. The seizure and encumbrance of the said property are not allowed except for the cases stipulated by legislative acts of the Republic of Belarus.

Article 41. Authorized Fund of the National Bank

The amount of the authorized fund of the National Bank is determined by its Statute.

Article 42. Reserve fund and other funds of the National Bank

The National Bank sets up a reserve fund and other funds intended to support its activity.

Setting up and use of the reserve fund and other funds are to be carried out in the manner stipulated by the Statute of the National Bank.

Article 43. Special reserves of the National Bank

The National bank creates, to cover potential losses on its operations, special reserves of general banking risks with allocation of the amounts of created reserves attributed to the expenses of the National Bank.

The formation and usage of special reserves of general banking risks is carried out in the order established by the National bank.

Article 44. Profit of the National Bank and distribution thereof

The profit of the National Bank is derived as a result of its carrying out activity in accordance with this Code and other acts of legislation of the Republic of Belarus.

The National Bank annually sends to the reserve of the organization that carries out the guaranteed compensation of banking deposits of natural persons, eighty percent of the profit determined on the basis of its annual bookkeeping (financial) statements the audit of which is performed in accordance with legislation of the Republic of Belarus, and the remaining part of the profit uses to increase (create) its funds.

Article 45. Compensation of losses of the National Bank

The compensation of losses of the National Bank sustained in the result of its activities is to be made out of the reserve fund of the National Bank.

Article 46. Annual reports of the National Bank

The annual reporting period for the National Bank is from January 1 to December 31.

The National Bank shall, annually not later than April 15 of the year following the reporting year, submit the annual report to the President of the Republic of Belarus.

The annual report of the National Bank includes:

report on activities of the National Bank, and fulfilment of the Fundamental Monetary and Credit Policy Guidelines of the Republic of Belarus;

annual accounting (financial) reports (balance sheet, profit and loss report, profit and its distribution, changes in proprietary capital, formation and use of funds, expenses on maintenance of the National Bank, on fulfilment of the estimates of capital investments, notes to reports), the audit of which is performed in accordance with legislation of the Republic of Belarus.

Once approved by the President of the Republic of Belarus, the annual report of the National Bank shall be published on the official site of the National Bank in the global computer network Internet.

Article 47. Audit of annual accounting (financial) reports of the National Bank

Audit of the annual accounting (financial) reports of the National Bank shall be carried out in the order established by the legislation of the Republic of Belarus.

Audit organization to hold the audit of the annual accounting (financial) reports of the National Bank is determined by the President of the Republic of Belarus for a period not exceeding five years from several organizations at the proposal of the National Bank.

Article 48. Restriction on participation of the National Bank in economic companies and other legal persons

Unless otherwise stipulated by the President of the Republic of Belarus, the National Bank may not participate in economic companies and other legal persons, with the exception of certain banks and organizations carrying out the reimbursement of deposits of natural person, of organizations supporting functioning of the National Bank, including those engaged in the securities market, effecting inter-bank settlements, financing and/or developing and introducing banking technologies, as well as international organizations engaged in developing cooperation in monetary, foreign currency and banking spheres.

The order of the participation of the National Bank in organizations referred to in part one of this Article is determined by the President of the Republic of Belarus.

Article 49. Delimitation of responsibilities of the National Bank, banks and non-bank credit and financial organizations

The National Bank is not liable for obligations of banks and non-bank credit and financial organizations, except for the cases when the National Bank assumes such obligations.

Banks and non-bank credit and financial organizations are not liable for obligations of the National Bank, except for the cases when banks and non-bank credit and financial organizations assume such obligations.

Article 50. Participation of the National Bank in international organizations

In accordance with legislation of the Republic of Belarus, the National Bank may participate in activities of international banking foundations, unions, and associations.

The National Bank represents the Republic of Belarus in international organizations on monetary and credit policy issues of the Republic of Belarus, foreign currency regulation, and other matters within its powers.

Article 51. Interrelationships between the National Bank and credit organizations of foreign states

Interrelationships between the National Bank and credit organizations of foreign states are established in accordance with treaties of the Republic of Belarus, legislation of the Republic of Belarus, and inter-bank agreements.

For the purposes of carrying out its functions, the National Bank may open representative offices in foreign states.

CHAPTER 6
OPERATIONS OF THE NATIONAL BANK

Article 52. Operations performed by the National Bank

Operations performed by the National Bank include:

extending credits to banks by way of refinancing;

settlement and cash servicing of the Government of the Republic of Belarus, organizations that appear on the list included in the Statute of the National Bank, and other organizations in the cases stipulated by legislative acts of the Republic of Belarus;

rediscounting of bills of exchange and promissory notes;

securities market operations;

carriage of cash monetary means, payment instructions, precious metals and precious stones and other valuables;

management, within its competence, of gold and foreign currency reserves, as well as operations with precious metals, with commemorative banknotes, commemorative and bullion (investment) coins which are legal means of payment of foreign states, and precious stones in any kind and state, including the sale, purchase and exchange thereof in the territory the Republic of Belarus and abroad;

opening and operating bullion accounts both within and outside the territory of the Republic of Belarus;

transfer of precious metals in the form of small bars on a gratuitous basis in the cases stipulated by legislations of the Republic of Belarus;

accepting monetary means of banks and non-bank credit and financial organizations, as well as the organization that carries out the guaranteed compensation of banking deposits of natural persons, in deposits;

operations in the Republic of Belarus and outside its limits with commemorative banknotes, commemorative and bullion (investment) coins which are legal means of payment of the Republic of Belarus, at a price not lower than the nominal;

extending, at the decision of the President of the Republic of Belarus, of bank guarantees sureties for investment projects;

inter-bank settlements, including settlements with non-bank credit and financial organizations;

accepting valuables for safekeeping;

remittance of money and other settlement operations;

sale of foreign currency, foreign currency payment instructions and other currency operations stipulated by legislations of the Republic of Belarus, including documentary operations and operations on extending credits in foreign currency;

foreign currency exchange operations with natural persons, and also with organizations the list of which is determined in the Statute of the National Bank, and other organizations in the cases provided for by the legislative acts of the Republic of Belarus;

provision of banking services to governments of foreign states, central (national) banks and financial bodies of those states, and to international organizations;

intermediary services in the capacity of a financial agent of the Government of the Republic of Belarus for the distribution of Government securities;

operations on servicing the state debt of the Republic of Belarus;

The National Bank have no right to provide services on carrying out bank operations to legal persons not having license to carry out banking activities and to natural persons, except for the cases stipulated by this Article.

Unless otherwise stipulated by this Code or other legislative acts of the Republic of Belarus, the National Bank shall perform bank operations for a fee.

Article 53. Credit activity of the National Bank

In the sphere of credit activity, the National Bank carries out refinancing of banks against state securities or other collateral determined by the Board of the National Bank.

The National bank has not right to grant credits, except for the cases, provided by part one of this Article, as well as by the law on republican budget for the next fiscal year and/or the President of the Republic of Belarus to finance the deficit of the budget and acquire state securities at their primary placement.

Article 54. National Bank operations with foreign currency, precious metals and precious stones

The National Bank is entitled to purchase, sell foreign currency, as well as payments instructions in foreign currency, exchange, allocate, accept, and store foreign currency and to perform other foreign currency operations stipulated by legislation of the Republic of Belarus.

To replenish or regulate the size of gold and foreign currency reserves, the National Bank may perform the following operations with precious metals and precious stones:

opening and operating bullion accounts both within and outside the territory of the Republic of Belarus;

purchase, sale, exchange, trust management, placement on deposit, accepting for deposit, and storage of precious metals in the form of bullions, nuggets, coins, and other forms and conditions, and precious stones, as well as pledge thereof.

The operations with precious metals and precious stones mentioned in part two of this Article are performed by the National Bank without a special permit (license) to carry out activities concerning precious metals and precious stones.

When the National Bank buys foreign currency from a bank for Belarusian rubles with a commitment to sale by this bank of foreign currency for Belarusian rubles after a certain period of time, the National Bank, in case of violation by the bank of the time limit of fulfilment of obligations, has the right to satisfy its claims in the order established by the legislation of the Republic of Belarus.

Article 55. Operations of the National Bank with securities

When carrying out monetary and credit regulation, the National Bank issues (emits) securities, determine technical requirements for their manufacture, and to perform operations with securities.

The National Bank provides intermediary services as a financial agent of the Government of the Republic of Belarus in the state securities market and participates in their circulation.

Article 56. Storage and carriage of cash, payment instructions, precious metals and precious stones and other valuables

The National Bank is entitled to carry out storage and carriage of cash monetary means, payment instructions, precious metals, precious stones and other valuables of the National Bank, banks, non-bank credit and financial organizations, and natural and legal persons in the manner prescribed by the National Bank.

Article 57. Servicing the national debt of the Republic of Belarus

In accordance with legislation of the Republic of Belarus, the National Bank exercises functions of a financial agent of the Government of the Republic of Belarus for servicing the national debt of the Republic of Belarus.

CHAPTER 7
STRUCTURE, GOVERNING BODY AND ORGANIZATIONS OF THE NATIONAL BANK

Article 58. Structure of the National Bank

The National Bank consists of a central apparatus and structural divisions located within and outside of the territory of the Republic of Belarus.

Structural divisions of the National Bank operate based on regulations to be approved in the order established by the Statute of the National Bank.

Article 59. [Excluded]

Article 60. Board of the National Bank

The supreme governing body of the National Bank is the Board of the National Bank, a collective body that establishes main guidelines of activities of the National Bank, carries out its administration and governance.

The number of members of the Board of the National Bank is determined by the President of the Republic of Belarus.

The competence of the Board of the National Bank and procedures for convening its meetings are determined by the Statute of the National Bank. The Board of the National Bank organizes its work in compliance with the rules of procedure.

Unless otherwise stipulated by the Constitution and other legislative acts of the Republic of Belarus, members of the Board of the National Bank may not hold other state offices, as well as be affiliated with a political party.

Restrictions referred to in part three of Article 68 of this Code cover the members of the Board of the National Bank.

Article 61. Order of formation of the Board of the National Bank

The Chairman and other members of the Board of the National Bank are appointed by the President of the Republic of Belarus with the consent of the Council of the Republic of the National Assembly of the Republic of Belarus for a term of five years in the order established by the legislative acts of the Republic of Belarus.

The same person may be appointed as a Chairman and a member of the Board of the National Bank not more than for two consecutive terms.

The Chairman and the members of the Board of the National bank are appointed from the employees of the National Bank who are public servants.

The representative of the Government of the Republic of Belarus may take part in the meetings of the Board of the National Bank in a consultative capacity.

Article 62. Dismissal from office of the chairman and/or member(s) of the Board of the National Bank

The President of the Republic of Belarus is entitled to dismiss the Chairman of the Board of the National Bank from office, with notification of the Council of the Republic of the National Assembly of the Republic of Belarus in the case of:

expiration of the term of office;

inability to perform functions for health conditions on the basis of the opinion of the medical advisory commission;

resignation;

attainment of the age of retirement (at the accord of the Chairman of the Board of the National Bank);

non-compliance, while in office, with the Constitution of the Republic of Belarus, laws the Republic of Belarus, decrees, edicts, and administrative orders of the President of the Republic of Belarus and other acts of legislation of the Republic of Belarus binding for the National Bank;

non-observance of restrictions established in part three of Article 68 of this Code;

disclosure of data constituting state or official secret;

being convicted guilty of committing a crime by a court sentence;

commission of acts that give reason to loss of trust toward this person.

The President of the Republic of Belarus is entitled to release members (a member) of the Board of the National Bank from office with the notification to the Council of the Republic of the National Assembly of the Republic of Belarus upon proposal of the Chairman of the Board of the National Bank, in the cases provided by part one of this Article.

Article 63. Decision-making by the Board of the National Bank

The sitting of the Board of the National Bank is deemed to be legally qualified provided that at least 70 percent of the members of the Board are present. The sitting of the Board of the National Bank shall not be held without the Chairman of the Board of the National Bank or a person that substitutes him.

Decisions of the Board of the National Bank are taken by a simple majority of votes of the members of the Board of the National Bank attending its sitting. In case of a parity of votes, that decision is considered to be taken for which voted the Chairman of the Board of the National Bank.

Decisions of the Board of the National Bank are taken in the form of resolutions. Decisions on certain matters not providing normative prescriptions may be formalized as protocols of the Board of the National Bank.

Article 64. Chairman of the National Bank

Chairman of the Board of the National Bank governs the activities of the National Bank and represents the National Bank as a state body and the central bank of the Republic of Belarus.

The powers of the Chairman of the Board of the National Bank are determined by the Statute of the National Bank.

Article 65. [Excluded]

Article 66. [Excluded]

Article 67. [Excluded]

Article 68. National Bank employees

The National Bank employees are divided into employees being public servants and employees that perform technical servicing and support of activities of the National Bank and are not public servants.

The legal status of the National Bank employees being public servants is determined by legislation of the Republic of Belarus on public service.

Alongside the restrictions provided for by the legislation of the Republic of Belarus on public service, the National Bank employees being public servants may not purchase personally or through intermediaries the shares of banks or non-bank credit and financial organizations.

The National Bank employees may obtain credits from other banks.

The terms of recruitment, dismissal, remuneration of labour, and rights and duties of National Bank employees are determined by the Board of the National Bank in accordance with legislation of the Republic of Belarus.

Certain categories of National Bank employees according to the list to be approved by the Board of the National Bank in accordance with legislation of the Republic of Belarus have the right to wear uniform and to carry and keep arms used while performing their duties.

Article 69. Organizations of the National Bank

The National Bank has the right to establish, upon obtaining the consent of the President of the Republic of Belarus, organizations necessary for maintenance of its activities.

The organizations of the National Bank operate based on statutes to be approved in the order established by the Statute of the National Bank.

SECTION III
BANKS AND NON-BANK CREDIT AND FINANCIAL ORGANIZATIONS

CHAPTER 8
GENERAL PROVISIONS RELATING TO BANKS

Article 70. Bank status

A bank is a commercial organization registered in the order established by this Code and having, on the basis of a license to carry out bank activities, an exclusive right to perform, in the aggregate, banking operations stipulated by part one of Article 8 of this Code.

A bank is entitled to perform other banking operations specified in the license to carry out bank activities.

Article 71. Organizational and legal form of the bank

The bank is created in the form of a joint-stock company in the order established by this Code and other legislation of the Republic of Belarus.

Article 72. Establishing by a bank (participation in establishing) of commercial organizations

For carrying out its statute objectives and with consent of the National Bank, a bank is entitled to be founder (participant) of commercial organizations in the order and on the conditions determined by this Code of other legislation of the Republic of Belarus.

Article 73. Statute of bank

A bank shall have the statute approved in the manner prescribed by legislation of the Republic of Belarus for a legal person of a relevant organizational and legal form.

The statute of a bank shall include:

the name of the bank, having regard to the requirements stipulated by this Code;

indication to its organizational and legal form;

date on the bank’s location (location of a permanent executive body of the bank);

list of banking operations in accordance with this Code;

information on the amount of the authorized fund;

information on the governing bodies, bodies of internal audit, procedures of their formation and powers thereof;

other data provided for by the legislation of the Republic of Belarus for the statute of a legal person of a relevant organizational and legal form.

Article 74. Name of the bank

A bank must have a name which shall comply with the requirements of legislation of the Republic of Belarus. The name of the bank must indicate the nature of this bank’s activity, through the use of the word "bank", as well as its organizational and legal form.

Legal persons registered in the territory of the Republic of Belarus in the established manner may not include in their name the word "bank", except for legal persons that have obtained a license to carry out banking operations from the National Bank, unless otherwise provided by the legislative acts of the Republic of Belarus.

Article 75. Authorized fund of the bank

The authorized fund of a bank is to be formed from the contributions of its founders (shareholders).

The minimum size of the authorized fund of a bank being created is established by the National Bank upon obtaining the consent of the President of Belarus.

When establishing a bank, the minimum size of its authorized fund must be formed of monetary means.

For the formation of the authorized fund of a bank, only own means of its founders may be used, and for the increase of the authorized fund of a bank – own means of shareholders of the bank, other persons and/or sources of its own means.

Own means of a founder (shareholder) of a bank, other persons mean any legally acquired monetary means or other property belonging to them on the right of ownership, right of economic management or by virtue of another right in property. The sources of own means of a bank are understood to be undivided profits of pastyears and funds created at the expense of profit, in case if mentioned sources were not used. As non-monetary contribution only the property necessary to carry out bank activity and attributed to fixed asset, with the exception of objects of unfinished construction, may be used.

Budgetary means and means from state non-budgetary funds as well as state property objects may be used for the formation of the authorized fund of a bank only in the cases and in the order stipulated by legislative acts of the Republic of Belarus.

Attracted monetary means and/or criminal incomes may not be used for the formation and the increase of the size of the authorized fund of a bank.

Monetary means and other property, submitted by the bank itself, as well as monetary means and other property submitted by other persons may not be used to increase the authorized fund of the bank, in the case if the bank accepted the risks arising in relation to provision to the bank of such monetary means and other property.

The property the alienation of which is restricted by the owner, by the legislation of the Republic of Belarus or by a contract may not be contributed to the authorized fund of a bank.

Monetary contributions to the authorized fund of a bank may be made both in Belarusian rubles and in foreign currency, except for the cases provided for by the legislation of the Republic of Belarus. However, the entire authorized fund must be stated and accounted in Belarusian rubles. The recalculation of the foreign currency into the official monetary unit of the Republic of Belarus is carried out according to the official exchange rate of the Belarusian ruble to the relevant foreign currency, established by the National Bank on the date of introduction of the monetary contribution into the authorized fund. The order of determining the date of making monetary contributions into the authorized fund of the bank is established by the National Bank.

Disposal of monetary means and other property, contributed to the authorized capital is allowed only after the state registration of the bank (state registration of changes and/or additions being introduced in the statute of a bank, connected with the increase of the amount of the authorized fund).

Article 76. Procedures for formation of authorized fund of the bank

Monetary means, with the exception of the cases provided by part two of this Article, contributed to the authorized fund of a bank are to be remitted to a temporary account opened by the bank founders or by the bank, in the case of an increase of its authorized fund, in the National Bank or, upon obtaining the consent of the National Bank, to temporary accounts opened in other banks. In case of opening of a temporary account in another bank, the monetary means shall be transferred to such account via the corresponding account ‘loro’ of this bank opened in the National Bank.

Opening of a temporary account is not necessary in the following cases:

adoption of a legislative act of the Republic of Belarus that provides for contributing monetary means into the authorized fund;

increase of the authorized fund of the bank at the expense of the sources of own means of the bank;

increase of the authorized bank fund at the expense of credits (loans) recognized as subordinated in accordance with the legislation of the Republic of Belarus, previously allocated in this bank.

CHAPTER 9
STATE REGISTRATION OF BANKS

Article 77. General provisions relating to state registration of banks

In accordance with this Code and other legislative acts of the Republic of Belarus, the following are subject to state registration:

banks being created, including in the result of a reorganization;

changes and/or additions introduced into the statutes of banks.

The state registration of banks, as well as of changes and/or additions introduced into statutes of banks, is carried out by the National Bank.

Peculiarities of state registration of banks, created in the result of reorganization, and state registration of changes and/or additions introduced into the statute documents of a bank in relation to its reorganization are established by the National Bank.

Article 78. [Excluded]

Article 79. Procedure for submission of documents necessary for state registration of the bank

Prior to submitting documents necessary for the state registration of a bank being created, founders of the bank are obliged to:

obtain the consent of with the National Bank for the name of the bank, in the order established by the National Bank;

determine the supposed location of the bank (location of its permanently acting executive body);

adopt the decision on creation of the bank and approve its statute;

approve the candidates for the positions of the head and chief accountant of the bank;

form the authorized fund of the bank in full.

Acceptance of documents necessary for the state registration of a bank is carried out in the National Bank in the presence of its founders (natural persons, representatives of legal persons). The founders of a bank are entitled to authorize one of the founders to represent their interests before the National Bank. In doing so, the founder – natural persons shall produce the identity documents, and a natural person authorized by the founders of the bank and representatives of legal persons shall produce, in addition to their identity documents, documents confirming their powers.

Article 80. Documents necessary for state registration of the bank

For the state registration of a bank being created, the following documents are to be presented to the National Bank:

application for the state registration of the bank being created according to the form established by the National Bank;

statute of the bank in two copies and its electronic version;

contract on creation of the bank;

protocol of the constituent meeting which besides the data provided by the legislation of the Republic of Belarus shall contain the data about the candidates to the positions of the head and the chief accountant of the bank;

documents confirming the formation of the bank’s authorized fund in full (statement of temporary account, expert opinion concerning the credibility of the property value appraisal in the case of a contribution to the authorized fund in kind and/or other documents in accordance with legislation of the Republic of Belarus);

copies of constituent documents and certificates of state registration of the founders – legal persons (legalized extract from the commercial register of the country of its foundation or another equivalent proof of the legal status of the organization in accordance with the legislation of the country of its establishment (the extract shall be dated not earlier than one year before the date of submission of the application for the state registration of the bank) with translation into Belarusian or Russian (the authenticity of the signature of the interpreter must be certified by a notary) – for founders, being foreign organizations, and also auditors’ reports containing data about the fact that the founders – legal persons have own means for the contribution to the authorized fund of the bank, from the founders;

document certifying the bank’s right to be situated at its location (location of its permanent executive body) specified in the statute of the bank;

copies of the identity documents of founders – natural persons (for founders being foreign natural persons, – legalized not later than one year from the date of submission of the application for the state registration of the bank with translation into Belarusian or Russian (the authenticity of the signature of an interpreter shall be certified by a notary));

list of founders with indication of the amount of their contribution, number, categories and nominal cost of shares subject to distribution among the founders, as well as of stakes of such shares in the authorized fund of the bank according to the form determined by the National Bank;

data on supposed beneficiary proprietors of the bank, each of which shall posses at least five percent of bank shares, according to the form determined by the National Bank;

transfer act or dividing balance sheet, containing provisions on the succession on obligations of the reorganized legal person (for a bank created in the result of an reorganization);

payment document confirming the payment of the state duty for the state registration of the bank.

The founders being foreign organizations additionally submit a written permit of the authorized body of the country of their establishment for the participation in the creation of he bank in the territory of the Republic of Belarus, in the case if such permit is required according to the legislation of the country of their establishment.

The National Bank, not later than one working day following the day of receipt of the documents, specified in part one of this Article, issues to the bank founders (their representatives), provided such documents, a written confirmation of their receipt.

Article 81. Making decisions on state registration of bank

The decision on state registration of a bank or on denial of its registration shall be taken by the Board of the National Bank within the period not exceeding two months from the date of submission of the documents required for the state registration of the bank, with the exception of for the case provided by part eight of Article 95 of this Code.

Prior to making the decision on state registration of a bank, the National Bank verifies the statute of the bank for compliance with the requirements of the legislation of the Republic of Belarus, as well as for the compliance of monetary means and other property, being contributed to the authorized fund of the bank with the requirements provided by Article 75 of this Code.

The National Bank, prior to taking the decision on state registration of a bank, is entitled to request from state bodies and other organizations additional data about the founders of the bank being registered, on the sources of their monetary means and other property being contributed to the authorized fund of the bank, necessary for considering the issue of compliance with the legislation of the Republic of Belarus while the bank is being established.

In the event of taking the decision on the state registration of a bank, the National Bank shall, within the period o five days, submit to the Ministry of Justice of the Republic of Belarus all the necessary data about this bank to include it into the United State Register of Legal Persons and Individual Entrepreneurs.

On the basis of the decision on the state registration of a bank, the National Bank shall, within five working days from the day of entering the record on the state registration of the bank into the United State Register of Legal Persons and Individual Entrepreneurs, hand out:

certificate on state registration of the bank;

documents confirming the putting on record in tax bodies, bodies of state statistics, bodies of the Fund of Social Protection of Population of the Ministry of Labour and Social Protection of the Republic of Belarus, registration in the organization carrying out obligatory insurance against accidents in the workplace and occupational diseases.

The information on the location of a bank (location of its permanently acting executive body) and its name shall be published on the official site of the National Bank in the global computer network Internet.

Article 82. Reasons for denial of state registration of banks

The state registration of a bank is not allowed if:

not all required documents were submitted for the state registration of the bank;

documents submitted for the state registration of the bank contain false data;

statute of the bank and/or other documents submitted for its state registration do not comply with the legislation of the Republic of Belarus;

for the moment of state registration performance, the authorized fund of the bank has not been formed in full;

facts of the use of monetary means or other property, not being own means of the founders of the bank, and/or profits received from criminal activities when the authorized fund of the bank was formed have been established;

bank being created in the result of reorganization does not comply with license requirements established by this Code;

at least one of the bank founders or one of its supposed beneficiary owners who will posses at least five percent of bank shares:

has non-cleared or non-expunged record of conviction for crimes against property and the order of carrying out economic activity.

is a public association pursuing political objectives;

does not comply with requirements, established by the National Bank.

In the event of taking the decision about the denial of state registration of the bank, the National Bank shall notify the bank founders in writing within five-day period with indication of reasons for the denial.

The decision about the denial of state registration of the bank or the failure of the National Bank to take decisions about its state registration within the established time-limit may be appealed against in the order established by the legislation of the Republic of Belarus.

Article 83. Actions of the bank after its state registration

A bank, with the exception of the case provided by part eight of Article 95 of this Code, within ten months from the day of its state registration, is obliged to:

take measures on fulfilling the license requirements, based on the list of bank operations, which bank intends to perform;

approach the National Bank for obtaining the license to carry out banking activities in accordance with Articles 94 and 95 of this Code.

In the event of failure of the bank to obtain the license to carry out banking activities within twelve months from the day of its state registration, such a bank is subject to liquidation in the order provided by the legislation of the Republic of Belarus, on the decision of shareholders of the bank or a body of the bank authorized for such actions by the statute of the bank, or of the economic court of a region (city of Minsk) upon the claim of the National Bank.

Prior to obtaining the license the bank is not entitled to:

carry out banking operations and other activities, with the exception of the cases when such activities are carried out to fullfill the license requirements;

establish affiliates, representative offices, structural divisions and remote workplaces;

act as founder (participant) of other legal persons.

Prior to obtaining the license to carry out banking activities, requirements of Articles 109 and 110 – 119 of this Code are not applied to the bank, unless otherwise provided by the National Bank.

Article 84. State registration of changes and/or additions introduced into the statute of the bank

For the state registration of changes and additions introduced into the statue of a bank, the bank is obliged to submit to the National Bank within thirty day period from the day of relevant decision the following documents:

application for the state registration of changes and/or additions introduced into the statute of the bank according to the form established by the National Bank;

extract from the minutes of the general meeting of bank’s shareholders on introducing changes and additions into its statute;

changes and/or additions being introduced into the statute of the bank and their electronic copy;

two copies of the bank’s statute in the new wording and its electronic copy;

payment document confirming the payment of the state duty for state registration of changes and additions being introduced into the statute documents of the bank.

For the state registration of changes/or additions introduced into the statute of a bank concerning changes in its name, alongside with the documents specified in part one of this Article, the bank shall additionally submit the original certificate on its state registration. The new name of the bank shall be previously agreed with the National Bank.

For the state registration of changes introduced into the statute of the bank concerning the change of the amount of the authorized fund, the bank shall, alongside with the documents specified in part one of this Article, additionally submit to the National Bank:

list of shareholders of the bank with indication of the changed number and category of shares belonging to them and the percentage of such shares in the authorized fund of the bank, the amount of their additional contributions being made into the authorized fund of the bank according to the form determined by the National Bank;

copy of the document confirming the state registration of the previous issue of shares in the authorized republican body of state administration that carries out the state regulation of the securities market;

in the event of increasing the authorized fund of the bank – documents confirming its increase (statement of temporary account, expert opinion concerning the credibility of the property value appraisal in the case of a contribution to the authorized fund in kind and/or other documents in accordance with legislation of the Republic of Belarus).

For the state registration of changes and/or additions introduced into the statute of the bank relating to its reorganization, the bank shall, alongside the documents specified in part one of this Article, additionally submit to the National Bank a transfer act or a dividing balance sheet.

The National Bank shall, before taking a decision on state registration of changes and/or additions introduced into the statute of the bank, verify their compliance with the requirements of the legislations of the Republic of Belarus, and in case of making additional contributions into the authorized fund of a bank – also the compliance of monetary means and other property contributed to the authorized fund of the bank with the requirements provided by Article 75 of this Code.

The National Bank is entitled, before taking a decision on state registration of changes and/or additions to the statute of the bank, to request additional data from state bodies and other organizations on new shareholders of the bank, sources of monetary means and other property contributed to the authorized fund of the bank, necessary for considering the issue of compliance with the legislation of the Republic of Belarus while the changes and/or additions have been introduced into the statute of the bank.

Prior to making a decision on state registration of changes and/or additions introduced into the statute of the bank concerning the change of its location, the National Bank is entitled to verify the existence of technical abilities of the bank to carry out banking operations at the new location.

The decision on the state registration of changes and/or additions introduced into the statute of a bank or on denial in their registration are to be taken by the National Bank within a period not exceeding two months from the day of submission of documents necessary for their state registration.

On the basis of the decision of the state registration of changes and/or additions introduced into the statute of the bank, the National Bank submits, within five days, to the Ministry of Justice of the Republic of Belarus necessary data about the bank to be included in the Unified State Register of Legal Persons and Individual Entrepreneurs.

Information on the change of location of a bank (location of its permanently acting executive body) or of its name are to be published on the official site of the National Bank in the global computer network Internet.

The state registration of changes and/or additions introduced into the statute of a bank is not allowed if:

not all required documents were submitted for the state registration changes and/or additions introduced into the statute of the bank;

false data has been detected in documents submitted for the state registration of changes and/or additions introduced into the statute of the bank;

documents submitted for the state registration of changes and/or additions introduced into the statute of the bank do not comply with the legislation of the Republic of Belarus;

acts of the use of monetary means or other property, not being own means of the founders of the bank, and/or provided by the bank itself, and/or provided to the bank by other persons in the case if the bank accepted the risks arising in relation to provision to the bank of such monetary means and other property, and/or profits received from criminal activities;

In the event of taking the decision about the denial of state registration of changes and additions introduced into the statute of a bank, the National Bank shall notify the bank in writing within five-day period from the day of taking such decision with indication of reasons for the denial.

The decision about the denial of state registration of changes and additions introduced into the statute of a bank or the failure of the National Bank to take decisions about the state registration of changes and additions introduced into the statute of a bank within the established time-limit may be appealed against in the order established by the legislation of the Republic of Belarus.

CHAPTER 10
SEPARATE AND STRUCTURAL DIVISIONS OF THE BANK

Article 85. Bank affiliate

An affiliate of the bank is its separate division located off the location of the bank, which carries out, on its behalf, all or a part of banking operations stipulated by a license to carry out banking activities. In the case of location of the premises of a bank affiliate at several addresses, the location of bank affiliate is determined on the location of its head.

An affiliate of the bank is not a legal person and carries out its activity on the basis of regulations approved by its founding bank. Regulations on an affiliate of the bank must comply with the provisions of the legislation of the Republic of Belarus and the statute of the bank.

The list of bank affiliates is to be appended to the bank statute

The property of an affiliate of the bank are formed by transferring a portion of the bank's property thereto.

The name of an affiliate of the bank shall carry an indication that it is an affiliate of its founding bank.

The affiliate head is appointed by the head of the bank that has established the affiliate, unless otherwise stipulated by the bank statute, and acts on the basis of a power of attorney issued in the established order.

The state registration of changes and/or additions introduced into the statute of a bank concerning the change in the attached list of bank affiliates shall be carried out in the order established by Article 84 of this Code.

The technical capabilities of a bank affiliate shall comply with the requirements established by the legislation of the Republic of Belarus to the technical capabilities for carrying out banking operations by the affiliate.

Article 86. [Excluded]

Article 87. Carrying out banking operations and other activities by a bank outside the location of the bank, its affiliate

A bank is entitled to carry out banking operations and/or other activities outside the location of the bank, bank affiliate by means of establishment of structural divisions, including mobile ones, placed outside the location of the bank, bank affiliate and other structural divisions not having an independent balance sheet (branches, centres of banking services, settlement and cash centres, exchange offices and other structural division), or by means of establishment of remote workplaces. Technical capabilities of such structural divisions and remote workplaces must comply with the with the requirements established by the legislation of the Republic of Belarus to the technical capabilities for carrying out respective banking operations, normative requirements to ensure personal safety of employees and customers, and other requirements ensuring the safety of carrying out banking operations.

The bank must notify the National Bank on the establishment, change of a location and closing of such structural divisions and remote workplaces in the order and within the time-limits established by the National Bank.

Article 88. Bank’s representative office

The representative office of a bank is its separate division situated off the place of location of the bank that represents and protects its interests.

The list of bank representative offices is to be appended to the bank statute

A representative office of a bank is not a legal person and carries out its activities on the basis of regulations approved by its founding bank.

A representative office of a bank may not perform banking operations and other activities stipulated by Article 14 of this Code with the exception of protecting and representing the interests of its founding bank including through providing counselling and information services.

The name of a representative office of a bank shall carry an indication that it is a representative office of its founding bank.

Heads of representative offices are appointed by the head of the bank that has established those representative offices, unless otherwise stipulated by the bank statute, and act on the basis of a power of attorney issued to them in the established order.

The state registration of changes and/or additions introduced into the statute of a bank concerning the change in the attached list of representative offices of the bank shall be carried out in the order established by Article 84 of this Code.

CHAPTER 11
SPECIFIC FEATURS OF ESTABLISHMENT OF A BANK FOUNDER (SHAREHOLDERS) OF WHICH ARE FOREIGN INVESTORS. REPRESENTATIVE OFFICE OF A FOREIGN BANK IN THE TERRITORY OF THE REPUBLIC OF BELARUS. SPECIFIC FEATURES OF ESTABLISHMENT OF SUBSIDIARY BANKS, OF OPENING AFFILIATES AND REPRESENTATIVE OFFICES OF RESIDENT BANKS OUTSIDE THE REPUBLIC OF BELARUS PARTICIPATION OF BANKS-RESIDENTS IN AUTHORIZED FUNDS OF FOREIGN BANKS

Article 89. [Excluded]

Article 90. Additional requirements to establishment and activity of banks founders (shareholders) of which are foreign investors in the territory of the Republic of Belarus

The amount (quota) of foreign capital participation in the banking system of the Republic of Belarus is established by the National Bank as agreed with the President of the Republic of Belarus. The said quota is calculated as a ratio of the total capital belonging to non-residents in the authorized funds of banks founders (shareholders) of which are foreign investors to the aggregate authorized fund of banks registered in the territory of Republic of Belarus.

The National Bank shall cease state registration of banks founders (shareholders) of which are foreign investors once the established amount (quota) of foreign capital participation in the banking system of the Republic of Belarus is reached.

In case of the increase of the authorized fund of a bank at the expense of means of non-residents and/or alienation by the bank and/or a shareholder-resident of shares of the bank in favor of non-residents, the purchaser of bank’s shares being non-resident, or a resident intending to conclude a relevant transaction, is obliged to obtain in advance a permission of the National Bank.

An application for a permission is considered by the National Bank within thirty days in the established order.

Transactions involving alienation of shares of banks by residents in favour of non-residents that have been performed without permission of the National Bank are invalid.

The National Bank is entitled to prohibit increase of the authorized fund of a bank founders (shareholders) of which are foreign investors at the expense of means of non-residents and/or alienation of shares in favour of non-residents if, as a result of such actions, the rate (quota) of foreign capital participation in the banking system of the Republic of Belarus will be exceeded.

The Government of the Republic of Belarus, on the proposal of the National Bank, is entitled to impose restrictions on banks founders (shareholders) of which are foreign investors on carrying out banking operations if similar restrictions are applied with regard to activities of banks with investments of citizens of the Republic of Belarus and/or legal persons of the Republic of Belarus in respective foreign states.

Article 91. Representative office of a foreign bank

A foreign bank is entitled to establish in the territory of the Republic of Belarus representative offices in the order established by the National Bank.

A representative office of a foreign bank is not a legal person and carries out its activity on the basis of regulations approved by the bank that has established it.

A representative office of a foreign bank has no right to carry out banking operations and other activities stipulated by Article 14 of this Code, with the exception of protecting and representing the interests of the bank that has established it, including by providing counselling and/or information services.

Article 92. Specific features of establishment of subsidiary banks, of opening affiliates and representative offices of resident banks outside the Republic of Belarus. Participation of banks-residents in authorized funds of foreign banks

Resident banks may establish subsidiary banks and open affiliates outside the Republic of Belarus, as well as to participate in authorized funds of foreign banks only with permission of the National Bank.

Representative office of resident banks outside the Republic of Belarus may be opened only after prior notification to the National Bank.

To obtain permission for establishing subsidiary banks, opening affiliates of a resident-bank outside the Republic of Belarus or for participation of a resident bank in the authorized fund of a foreign bank, the following shall be submitted to the National bank:

application;

resolution of the authorized body of the bank on establishing a subsidiary bank or opening an affiliate of the resident bank outside the Republic of Belarus or on the participation of the resident bank in the authorized fund of a foreign bank;

feasibility study of establishing a subsidiary bank, opening an affiliate of the resident bank outside the Republic of Belarus or for participation of the resident bank in the authorized fund of a foreign bank;

documents that determine the legal status of a subsidiary bank or affiliate of the resident bank outside the Republic of Belarus or documents confirming the legal status of the foreign bank for participation in which the permission in applied for.

Decisions on granting permission to establish a subsidiary bank or to open an affiliate of a resident bank outside the Republic of Belarus abroad as well as to participate in the authorized fund of a foreign bank or on denial of such permission must be made within thirty days from the date of submission of the documents specified in part three of this Article. The National Bank shall notify the bank of its decision in writing within five days from the date of the decision.

The grounds for denial of permission to establish a subsidiary bank, to open an affiliate of a resident bank outside the Republic of Belarus or for participation of a resident bank in the authorized fund of a foreign bank are:

the bank has been incurring losses on the first day of the month in which a bank applied to the National Bank for the issuance of the permission, or the availability of the accurate information about the loss of the bank on the day of decision-taking;

existence of facts of non-fulfilment by the bank of standards of safe functioning and/or other requirements established by Chapter 15 of this Code within last three months prior to the day of applying to the National bank for the issuance of the permission;

existence of obstacles for carrying out by the National Bank of bank supervision on a consolidated basis;

other grounds provided for by the treaties of the Republic of Belarus.

Denial of granting permission to establish a subsidiary bank, to open an affiliate of a resident bank outside the Republic of Belarus or for participation of a resident bank in the authorized fund of a foreign bank or failure by the National Bank to take a decision within the period of time stipulated by this Article may be appealed by the bank to the Supreme Court of the Republic of Belarus.

CHAPTER 12
LICENSING OF BANKING ACTIVITIES

Article 93. General dispositions on licensing of banking activities

Licenses for carrying out banking operations are issued by the National Bank in the order stipulated in this Code and normative legal acts of the National Bank adopted in accordance with the Code.

A bank acquires the right to carry out banking activities from the date of obtaining a license to carry out banking activities.

Licenses issued by the National Bank are recorded in the register of licenses to carry out banking activity. In the event of revocation, suspension, or revalidation of a license carry out banking activity, including concerning performance of some banking operations, a proper entry is to be made in the said register.

The register of licenses to carry out banking activity shall be placed on the official site of the National Bank in the global computer network Internet. Changes and additions introduced in the said register shall be placed on the mentioned site with five-day period from the day of their entering into the register.

A license to carry out banking activity shall specify banking operations which the bank is entitled to perform.

Article 94. Licensing requirements for obtaining a license to carry out banking activities

The licensing requirements for obtaining a license to carry out banking activities are:

the bank dispose of a normative capital of not less than a minimum amount established by the National Bank;

the bank has a business plan (strategic plan of bank development) complying with the requirements established by the National Bank;

the bank has the Board of Directors (Supervisory Board) and executive organ, compliance of the composition of the Board of Directors (Supervisory Board) with the requirements established by the National Bank;

members of the Board of Directors (Supervisory Board), with the exception of a representative of a state, and members of a collegiate executive body (in case of its establishment), as well as the head and the chief accountant of the bank, their deputies meet the qualification requirements and/or requirements to the business reputation, established for them;

the bank has a system of risk management and internal control system, complying with the requirements established by the National Bank;

the bank meets the requirements for technical capabilities to conduct banking activities, established by the legislation of the Republic of Belarus;

the organizational structure of the bank meets the requirements established by this Code, as well as transparency of the structure of its property. Criteria of the evaluation of the transparency of the structure of the bank property are established by the National Bank.

For the banks entitled to carry out banking operations on attraction of monetary means from natural persons, not being individual entrepreneurs, in accounts and/or deposits, on opening and operation of bank accounts of such natural persons or applying to obtain such a right, the licensing requirements, besides those listed in the part one of this Article, are:

the bank has a normative capital in the amount established by the National bank, or in twofold amount in case if from the moment when the bank obtained the license to carry out banking activities less than two years passed;

stable financial standing of the bank within last two years or from the moment when the bank obtained the license to carry out banking activities in case if from the moment of obtaining of such a license less than two years passed. Criteria of stable financial standing of a bank and the order of its evaluation are established by the National Bank.

The Bank is obliged to meet constantly licensing requirements.

Article 95. Procedure for obtaining license to carry out banking activities and introducing changes and/or additions into the license

In order to receive a license to carry out banking activities, the following documents shall be submitted to the National Bank:

application according to the form established by the National Bank;

data on members of the board of directors (supervising board), collegiate executive body (in case of its establishment), head and chief accountant of a bank, their deputies, officials, responsible for risk management, officials responsible for the internal control in a bank, head of the internal audit service, appointed (elected) on the moment of submission of the application, according to the form established by the National Bank;

local normative legal acts of the bank, regulating organization of the system of risk management, internal control system and activity of the bank’s internal audit service;

business plan of the bank;

calculation of the normative capital of the bank according to the form established by the National Bank;

data on beneficiary owners of the bank being as such with regard to at least five percent of bank shares, according to the form established by the National Bank;

payment document confirming the payment of the state duty for the issue of the licence.

Changes and/or additions to the list of banking operations specified in the license to carry out banking activities issued to a bank are introduced:

on the petition of the bank when it meets the licensing requirements;

on the initiative of the National Bank in the case of changes in the legislation of the Republic of Belarus, and also in the cases provided for by Articles 97, 1011, 134 и 1341 of this Code.

Documents submitted by a bank for introducing changes and/or additions into the list of banking operations specified in the license to carry out banking activities issued to the bank, as well as the procedure of their submission and consideration are established by the National Bank.

Decision on issuance (denial to issue) a license to a bank to carry out banking activities, introduction (denial to introduce) of changes and/or additions to the list of banking operations, provided in the license to carry out banking activities issued to a bank shall be taken by the National Bank within the time-limit not exceeding two months from the day of submission to the National bank of documents necessary to obtain a license to carry out banking activities, introduction of changes and/or additions into the list of banking operation specified in such a license.

Prior to taking the decision on issuance of the license to carry out banking activities to a bank, introduction of changes and/or additions into the list of banking operations specified in the license to carry out banking activities issued to the bank, the National bank is entitled to conduct an inspection of the compliance of the bank with the licensing requirements established by this Code for carrying out banking operations indicated in the application for the license, and/or request from the applicant additional documents confirming compliance with such licensing requirements.

The license to carry out banking activities shall be issued to the bank within five working days from the day when the National Bank has taken such decision.

On the basis of the decision on introduction of changes and/or additions into the list of banking operations specified in the license to carry out banking activities issued to the bank, the National bank, within five days from the date of adoption of such decision, issues the license to the bank, formalized on a new blank form with indication of the list of banking operations which the bank is entitled to carry out. Simultaneously the bank must return to the National Bank the license to carry out banking activities (its duplicate) issued earlier.

Founders of a bank are entitled to apply to the National bank for the license to carry out banking activities simultaneously with submission of a petition on the state registration of the bank subject to meeting licensing requirements established by this Code. In this case simultaneously with the documents necessary for the state registration of the bank, documents provided by part one of this Article to obtain a license to carry out banking activities must be submitted. In this instance the time-limit for to taking the decision on issuance of the license to carry out banking activities to the bank may be extended by the National Bank up to three months. Upon availability of the grounds for denial to issue the license to carry out banking activities, provided by part one of Article 96 of this Code, the National Bank carries out the state registration of the bank without issuance of such license in the order established by Charter 9 of this Code.

This Article does not apply to the case of revocation by the National bank of a license to carry out banking activities in the part of carrying out certain banking operations, provided for by part two of Article 99 of this Code.

Article 96. Grounds for denial of issuing license to carry out banking activities or of introducing changes and additions into license

The National Bank is entitled to deny the issuance of the license to carry out banking activities in case if:

not all documents provided by Article 95 of this Code, required to obtain the license to carry out banking activities, are submitted;

documents submitted to obtain the license to carry out banking activities contain false data;

the bank does not comply with licensing requirements established by this Code.

Grounds for denial of introducing changes and/or additions into the list of banking operations specified in the license to carry out banking activities are established by the National Bank.

Article 97. Grounds for suspension, reinstatement of license to carry out banking activities and its revocation

The National Bank is entitled to suspend a license to carry out banking activities in the part of performance of certain banking operations for a term necessary for the elimination of violations detected in activities of a bank, but not exceeding one year, in the case of:

non-compliance with prescriptions of the National Bank;

non-compliance with standards of safe functioning and/or other requirements established by Chapter 15 of this Code;

non-submission, late submission, submission of incomplete and/or false reports, as well as other information obligatory for submission to the National Bank in accordance with this Code and other legislation of the Republic of Belarus, and/or violation of the order of its submission;

creation of such financial standing of the bank which can entail threat to stability of the banking system of the Republic of Belarus and/or interests of depositors and other creditors of the bank;

incompliance with licensing requirements established by this Code;

other violations of banking legislation requirements.

The National Bank reinstates the suspended license to carry out banking activities in the part of performance of certain banking operations when the bank submits a petition containing information on the elimination of violations detected in its activities, which entailed the suspension the validity of the license. When necessary, the National Bank is entitled to carry out an inspection of the accuracy of the information on the elimination of violations, submitted by the bank.

In the case when the detected violations have not been eliminated within the period established by the National Bank, the National Bank is entitled to suspend the license to carry out banking activities for a new period or to revoke it, including in the part of performance of certain banking operations.

The National Bank is also entitled to revoke the license to carry out banking activities, including in the part of performance of certain banking operations, in the case of:

incompliance with licensing requirements established by this Code if it could lead to a threat to stability of the banking system of the Republic of Belarus and/or interests of depositors and other creditors of the bank;

a fact of false data submission is detected on the basis of which the license to carry out banking activities was issued or changes and additions into the list of banking operations specified in it were introduced

non-performance of banking operations specified in the issued license to carry out banking activities within a period of one year;

established fact of inaccurate data contained in reports which could lead to a threat to stability of the banking system of the Republic of Belarus and/or interests of depositors and other creditors of the bank;

repeated (not less than twice) violations, within one year, of requirements established by the National Bank for the manner and deadlines of reports submission;

performance, including a single case, of banking operations which are not specified in the issued license to carry out banking activities;

violations of other requirements of banking legislation if, within a year, measures of influence established by this Code were repeatedly (not less than twice) imposed on the bank;

creation of such financial standing of the bank which has entailed the non-fulfilment of its obligations before depositors and other creditors;

presence of grounds for recognizing the bank bankrupt in accordance with legislative acts of the Republic of Belarus;

reorganization of the bank by the way of its merger and affiliation (for the affiliated bank), or splitting-up or transformation in a non-bank credit and financial organization (introduction of corresponding changes into the bank statute);

taking decision of the bank liquidation.

In the case of elimination of violations with regard to which the license to carry out banking activities in the part of performance of certain banking operations has been revoked, the bank is entitled to make a petition to the National bank on introducing changes and/or additions in the list of banking operations specified in the license to carry out banking activities issued to it. When necessary, the National Bank is entitled to carry out an inspection of the accuracy of the information on the elimination of violations, submitted by the bank.

Article 98. Suspension and reinstatement of license to carry out banking activities

The decision of the National Bank on suspension and reinstatement of a license to carry out banking activities in the part of performance of certain banking operations enters into force from the moment of notification of the bank about the decision.

The notification about the suspension and reinstatement of the license to carry out banking activities in the part of performance of certain banking operations is subject to publication by the National Bank in republican printed mass media being official editions and on the official site of the National Bank in the global computer network Internet within 5 days from the date of the respective decision.

In case of suspension of the license to carry out banking activities in the part of performance of certain banking operations, obligations of the parties relative to the performance of those operations are terminated through the fulfilment by parties of theirs obligations under a respective contract. In this instance, it is prohibited for the bank to conclude new contracts and to renegotiate already concluded contracts for a new term the fulfilment of obligation under which is related to the performance of a banking operation in part of which the license to carry out banking activities has been suspended, unless otherwise provided in the decision of the National Bank on suspension of the license to carry out banking activities.

Article 99. Revocation of license to carry out banking activities and consequences thereof

The decision of the National Bank on revocation of a license to carry out banking activities, including in the part of performance of certain banking operations, enters into force from the moment of notification of the bank about the decision.

On the basis of the decision on revocation of the license to carry out banking activities in the part of performance of certain banking operations, the National Bank issues a license formalized on a new blank form with the list of banking operations which bank is entitled to carry out. Simultaneously the bank must return to the National Bank the license to carry out banking activities (its duplicate) issued earlier.

The notification about the revocation of the license to carry out banking activities, including in the part of performance of certain banking operations is subject to publication by the National Bank in republican printed mass media being official editions and on the official site of the National Bank in the global computer network Internet within 5 days from the date of the respective decision.

In case of revocation of the license to carry out banking activities in the part of performance of certain banking operations, obligations relative to the performance of those operations are subject to termination because of impossibility of their fulfilment. In this instance, the bank shall compensate depositors and other creditors for all losses they suffered because of the impossibility of the fulfilment by the bank of its obligations relative to the performance of certain banking operations in the part of which the license has been revoked.

In case of the revocation from the bank of the license to carry out banking activities in part of performance of all banking operations specified in part one of Article 8 of this Code, when the license remains valid relative to the performance of other banking operations, it is allowed the transformation of the bank in a non-bank credit and financial organization (introduction of respective changes to the bank statute).

In case of revocation of the license to carry out banking activities and provided that the bank has fulfilled completely its obligations before depositors and other creditors, the bank is subject to liquidation.

From the moment of revocation of the license to carry out banking activities:

obligations of the bank in foreign currency are determined for in Belarusian roubles at the official rate of the National Bank valid on the date of revocation of the license to carry out banking activities;

the bank bears no responsibility for the breach of its obligations because of the impossibility of their fulfilment due to the revocation of the license to carry out banking activities, the termination of accrual of interest, penalties (forfeit, fines) included;

enforcement of execution documents with respect to property recovery are suspended, except for the enforcement of execution documents issued on the basis of court decisions as to wage arrears recovery, payment of author's royalties and alimony, and compensation for injury to life or health that become effective prior to the revocation from the bank of the license to carry out banking activities;

it is prohibited for the bank to conclude new contracts and to renegotiate for a new term already concluded contracts, to fulfil bank obligations under those contracts, including the performance of operations on a correspondent account of the bank, except for the operations relative to current and operating payments of the bank, repayment of dismissal wages and remuneration for work of persons employed under a labour contract, within the expense budget agreed with the National Bank, as well as to return monetary means improperly credited to the correspondent account of the bank, prior to the establishment of a liquidation committee (appointment of the liquidator) or the appointment of a receiver (crisis manager) by the economic court of a region (city of Minsk).

Article 100. [Excluded]

CHAPTER 13
REORGANIZATION AND LIQUIDATION OF BANKS

Article 101. Reorganization of the bank

The reorganization of a bank by the way of its split-up or split-off of another bank (banks) is allowed provided that the authorized fund of the bank(s) emerging as a result of the reorganization remains within the minimum authorized fund established by the National Bank.

A bank may merge only with a bank(s). Once banks have taken decision to merge, it is necessary to obtain permission from the National Bank for their merger. The procedure for obtaining permission is established by the National Bank.

A bank may be reorganized by way of affiliation only to another bank. Only a bank or a non-bank credit and financial organization may be affiliated with a bank.

Reorganization of a bank is carried out with notification of the creditors of the bank being reorganized. Any creditor of the bank being reorganized is entitled to require termination or early fulfilment of obligation under which the bank is a debtor and compensations for losses.

When merged, the banks are obliged to return the licenses to carry out banking activities (their duplicates) issued to them and copies thereof to the National bank. At that, the newly created bank is entitled to submit to the National Bank a petition on issuance of the license to carry out banking activities specifying the list of banking operations which the reorganized banks were entitled to perform.

When affiliated, the bank reorganized by the way of affiliation with another bank is obliged to return the license to carry out banking activities (its duplicate) issued to it and copies thereof to the National bank. The bank reorganized by way of affiliation of another bank is entitled to submit to the National Bank a petition on introduction of changes and/or additions to the list of banking operations specified in the license that was issued to it to include in the list the banking operations which the affiliated bank has been entitled to perform.

When split off, the reorganized bank is obliged to return the license to carry out banking activities (its duplicate) issued to it and copies of such license to the National Bank, and the banks being created as a result of split-off shall submit petitions for issuance of licenses to carry out banking activities.

When split-up, the reorganized bank is obliged to return the license to carry out banking activities (its duplicate) issued to it and copies of such license to the National Bank, and banks created as a result of the split-up must submit petitions for issuance of licenses to carry out banking activities to them.

When reorganized, the rights and duties of the bank are transferred to a created bank(s) and other legal persons in the manner established by the civil legislation.

Article 1011. Peculiarities of state registration upon reorganization of the bank

Upon reorganization of a bank via split off, the state registration of the created bank and, if necessary, the state registration of changes and/or additions introduced into the statute of the bank being reorganized shall be carried out.

Upon reorganization of a bank via its merging, affiliating, the state registration of the banks (bank) being created shall be carried out.

Upon reorganization of a bank via transformation, affiliation, if necessary, the state registration of changes and/or additions introduced into the statute of the bank being reorganized shall be carried out.

A bank being created in the result of reorganization shall comply with licensing requirements established by this Code from the moment of its creation.

The National Bank simultaneously with the decision on state registration of the bank created in the result of reorganization takes a decision on issuance for it of the license to carry out banking activities.

The National Bank simultaneously with the decision on the state registration of changes and/or additions introduced into the statute of the reorganized bank may take a decision on introducing changes into the list of banking operations specified in the license issued to the bank to carry out banking activities.

Article 102. Liquidation of the bank

The termination of activities of a bank is carried out by way of its liquidation in accordance with legislation of the Republic of Belarus and with regard to the requirements established by this Code.

A bank may be liquidated by decision of its participants or a body of the bank authorized by the statute, of the economic court of a region (city of Minsk) in cases stipulated by legislative acts of the Republic of Belarus. The decisions on the liquidation of the bank may be taken by its participants or a body of the bank authorized by the statute only after the bank has fully settled all obligations before depositors and other creditors of the bank.

The liquidation of a bank, on the initiative of its participants or a body of the bank authorized by the statute, is carried out with a written consent of the National Bank. Procedure for obtaining such consent is established by the National Bank.

If the National Bank refuses to grant its consent for liquidation of a bank, it shall give grounds for its decision and to submit respectively to participants or a body of the bank authorized by the statute a plan of actions to eliminate the causes underlying the decision to liquidate the bank.

The participants of the bank or a body of the bank authorized by the statute that have taken the decision to liquidate the bank shall set up a liquidation commission (appoint a liquidator) within ten days from the date of receipt of the National Bank’s consent, appoint its chairman, and establish procedures and deadlines for liquidation in accordance with legislation of the Republic of Belarus.

The National Bank shall, within five days, submit to the Ministry of Justice of the Republic of Belarus data that the bank is in the process of liquidation for their entry in the Uniform State Register of Legal Persons and Individual entrepreneurs.

The liquidation commission (liquidator) shall assess financial standing of the bank within thirty days of the decision on liquidation of the bank and, if the bank's assets are insufficient to meet the claims of the creditors and/or to pay debts to the budget and to the state non-budgetary funds, file with the economic court of a regions (city of Minsk) an application on the bankruptcy of the bank. The economic court of a regions (city of Minsk) carries out bankruptcy procedure in the manner stipulated by legislation of the Republic of Belarus.

The bank is considered liquidated from the date of the exclusion of the bank from the Uniform State Register of Legal Persons and Individual entrepreneurs.

A notification about the exclusion of the bank from the Uniform State Register of Legal Persons and Individual entrepreneurs is to be published by the National Bank in national printed mass media being official editions and in the official edition of the National Bank within thirty days from the date of an appropriate entry in the Register. 

Article 103. Termination of activities and obligations of banks at its liquidation

The bank is obliged to terminate its activities from the date of the decision on its liquidation.

Persons who have concluded a bank account contract with a bank to be liquidated are obliged to terminate the contract unilaterally within thirty days from the date of publication about the liquidation of the bank in national printed mass media being official editions.

Article 104. Priority of depositors’ and other creditors’ claims settlement at bank liquidation

When a bank is liquidated, with the exception of the case of its liquidation due to the bankruptcy, claims of its depositors and other creditors are settled in the following order of priority:

first, monetary means of natural persons place on the accounts and/or deposits, and interest accrued thereon, and also claims for compensation of harm caused to life and health of citizens shall be compensated;

second, arrears of alimony of expenses of the state for maintenance of children under state protection, salaries and dismissal wages payable to the bank’s employees are discharged;

third, indebtedness on payments to the budget and state non-budgetary funds as well as claims of creditors on obligations secured by property pledge shall be compensated;

fourth, deposits of individual entrepreneurs and legal persons and interest thereon are repaid;

fifth, claims of the National Bank relative to credits extended to the bank for refinancing are satisfied;

sixth, claims of other creditors in accordance with legislation of the Republic of Belarus are satisfied.

Claims of depositors and other creditors in each subsequent category are satisfied only after claims of depositors and other creditors of the preceding category have been completely satisfied.

CHAPTER 14
GENERAL PROVISIONS ABOUT NON-BANK CREDIT AND FINANCIAL ORGANIZATIONS

Article 105. Organizational and legal form of non-bank credit and financial organization

A non-bank credit and financial organization is established as an joint-stock company and carries out its activity in the manner established by legislation of the Republic of Belarus, having regard to the specifics stipulated by this Code.

Article 106. Name of non-bank credit and financial organization

The name of a non-bank credit and financial organization must indicate the nature of activity of the organization through the use of the words "non-bank credit and financial organization", as well as its organizational and legal form.

Legal persons registered in the territory of the Republic of Belarus in the established order may not use in their name the words "non-bank credit and financial organization" or otherwise indicate that they have the right to carry out banking activities, except for the persons that have obtained license to carry out banking activities from the National Bank.

Article 107. State registration and licensing of non-bank credit and financial organizations

The state registration and licensing of activities of non-bank credit and financial organizations are carried out by the National Bank in the order established by this Code for banks. A non-bank credit and financial organization may perform certain banking operations stipulated by this Code on the basis of the license issued by the National Bank.

Minimum size of the authorized fund of non-bank credit and financial organization as well as the order of its formation are determined by the National Bank.

Article 108. Reorganization and liquidation of non-bank credit and financial organizations

In case of reorganization of a non-bank credit and financial organization through transformation into some other commercial organization, the latter may not be transformed into a non-bank credit and financial organization within three years from the date of revocation of the license to carry out banking activities.

The transformation of a non-bank credit and financial organization into a bank (introduction of relevant changes to the statute of the non-bank credit and financial organization) is allowed subject to requirements stipulated by Chapter 9 of this Code for the state registration of banks.

Liquidation of non-bank credit and financial organizations shall be carried in accordance with the legislation of the Republic of Belarus and with regard to the requirements established by this Code for banks.

SECTION IV
ENSURING STABILITY OF BANKING ACTIVITIES LIABILITY OF SUBJECTS AND PARTICIPANTS OF BANKING RELATIONS

CHAPTER 15
ENSURING STABILITY OF BANKING ACTIVITIES PROTECTION OF RIGHTS AND INTERESTS OF DEPOSITORS AND OTHER CREDITORS OF BANKS

Article 109. Ensuring financial soundness of banks

A bank must constantly ensure its financial soundness, timely and complete fulfilment of obligations before customers and client and contractors, carry out the proper management of risks which arise from its activities, support normative capital of a bank on a level sufficient to compensate risks, form reserves to cover losses and also comply with other requirements established by the National Bank in accordance with this Code.

The head organization of a bank group and/or bank holding is obliged to constantly ensure its financial soundness of the bank group and/or bank holding, to organize proper management of risks on a consolidated basis, to ensure maintenance of normative capital the bank group and/or bank holding on a level sufficient to compensate risks, and also to comply with other requirements established by the National Bank in accordance with this Code.

A legal person capable to exert, directly or indirectly (through third persons), substantial influence on a bank and/or non-bank credit and financial organization, and/or other legal person recognized to be a part of a bank holding, must not allow to exert such influence in case if it prevents the fulfilling of requirements provided by parts one and two of this Article.

Legal persons recognized to be as part of a bank group and/or bank holding are not entitled to perform between them a transaction which prevents the fulfilling of the requirements provided by parts one and two of this Article. Such a transaction may be recognized invalid by the court on a lawsuit of the National Bank.

A bank is obliged to form a reserve fund to use it for covering of losses. The amount of deductions to the reserve fund shall be at least five percent of bank’s profit, remaining in its disposal after paying taxes, dues (duties), other obligatory payments to the republican and local budgets, state non-budgetary fund of social protection of the population of the Republic of Belarus and other state non-budgetary funds, till the moment when the reserve attains the amount of at least ten percent of the amount of the normative capital of the bank. A shareholder of the bank is entitled to contribute monetary means into the reserve fund of the bank to cover its losses. The National Bank is entitled to increase for a bank the amount of the reserve fund and/or the amount of deductions to it, provided by this part, in cases and in the order provided by Articles 134 and 1341 of this Code.

A bank must constantly carry out the classification of its assets and operations, not reflected in its balance sheet, according to the level of their soundness and establish special reserves to cover possible losses on such assets and operations, including reserves for devaluation of assets. The National bank is entitled, on the basis of motivated reasoning, to change the classification of assets and operations not reflected in its balance sheet, applied by a bank according to the level of their soundness. The bank is obliged to form special reserves to cover possible losses on assets and operations not reflected in its balance sheet, having regard to the changes made by the National Bank to the classification of assets and operations, not reflected in its balance sheet, performed by the bank, according to the level of their soundness.

The bank is obliged to observe standards of safe operation, bans, and restrictions established in accordance with this Code, which ensure its safe and sound operation.

Article 1091. Requirements to the organization of corporate management of a bank, risk management and internal control

Corporate management of a bank means a system of interaction of shareholders, governing bodies, control bodies, officials of the bank and other interested persons, aimed at common management of activities of the bank.

Governing bodies of a bank are obliged to organize effective corporate management of the bank that corresponds to the nature and volume of performed bank operations and other activities and ensures its financial soundness.

A bank is obliged to undertake necessary measures to exclude the conflict of interests and conditions of their appearance, possibility of committing crimes and other illegal actions while carrying out its activities. Spheres and conditions of appearance the conflict of interest in activities of a bank shall be determined by the National Bank.

The board of directors (supervisory board) of a bank ensures the organization of a corporate management of the bank, system of risk management and system of internal control, exclusion of the conflict of interests in bank activities and conditions of its appearance. Requirements to the organization of the system of risk management and system of internal control in a bank shall be established by the National Bank.

The board of directors (supervisory board) shall include at least two independent directors unless another number is determined by the National Bank. For the purposes of this Code independent director of the bank is recognized a member of the board of directors which without regard to that status is not:

a beneficial owner of the bank, being as such in respect of at least five percent of the shares of the bank;

head, member of bank’s collegiate executive body, bank employee;

head of another bank;

head, member of the governing body of the legal person – beneficial owner of the bank, being as such in respect of at least five percent of the shares of the bank;

head, member of the governing body, employee of the legal person, owner of the property or holder of at least twenty percent of shares (stakes in the authorized capital) of which, directly or indirectly (through other natural persons and/or other organizations) is a beneficial owner of the bank, being as such in respect of at least five percent of the shares of the bank. For recognizing a beneficial owners of the bank as indirect owner of property or indirect holder of shares (stakes in authorized capital) of such legal person shall be applied ground for recognition of availability of indirect possession of shares and the procedure for calculation of the stake of shares being in such possession, to be established by the National Bank in accordance with part three of Article 34 of this Code;

head, member of the governing body, employee of an economic company being affiliated or recognized as dependable in relation to the bank;

head, member of the governing body, employee of a legal person making part of a bank group, bank holding a member of which is the bank and of a legal person which exerts  (capable to exert ) essential influence, directly or indirectly (through third persons), recognized as such in accordance with parts ten – thirteen of Article 35 of this Code, decisions taken by governing body of another legal person making part of the bank group, bank holding, a participant of which is the bank;

head, member of the governing body, employee of a legal person being an affiliated person of the bank and/or insider of the bank, bank group, bank holding;

affiliated person of the bank and/or insider of the bank, bank group, bank holding;

person the decisions of which taken in respect of the bank may be essentially influenced by the bank and/or persons connected with the latter. The National Bank, in the order established by it, is entitled to recognize, on the basis of a motivated reasoning and/or methodics established by it, to recognize persons as connected with the bank, and also to recognize the influence of the bank and/or persons connected with it as essential.

The board of directors (supervisory board) of a bank establishes an audit committee the functions of which include general management and support of the functioning of the system of internal control, service of internal audit of the bank, and also selection and organization of interaction with audit organizations, auditors – individual entrepreneurs. The audit committee shall be headed by an independent director.

A member of the board of directors (supervisory board), with the exception of the representative of the state in the governing bodies of the bank, the head and the chief accountant of the bank, their deputies, members of the collegial executive body of the Bank, as well as candidates for these positions must meet the qualification requirements and/or requirements to the business reputation, established for them. Assessment of compliance with such requirements shall be conducted by a special qualification commission of the National Bank in the cases and order established by the National Bank.

The executive body of a bank organizes the system of risk management and internal control system ensures that the bank fulfills the goals and objectives established by the board of directors (supervisory board). The bank is not entitled to delegate powers of its executive body under the contract to another commercial organization or individual entrepreneur (manager).

The head of a bank is a person acting as the sole executive body, or person that chairs the collegial executive body.

The qualification requirements are:

for the head of a bank – higher education, working experience of at least three years in executive positions in a bank, non-bank credit and financial organization, international financial institutions, the National Bank and/or the audit firm carrying out auditing in banks, non-bank credit and financial organizations, sufficient theoretical and practical knowledge;

for a deputy of the head of a bank, member of the collegial executive body of a bank – higher education, working experience of at least two years in executive positions in a bank, non-bank credit and financial organization, international financial institutions, the National Bank and/or the audit firm carrying out auditing in banks, non-bank credit and financial organizations, sufficient theoretical and practical knowledge;

for the chief accountant of a bank – higher education, special training in the field of international financial reporting standards, work experience of at least three years in executive positions in a bank, non-bank credit and financial organization, and/or the National Bank in the field of accounting, accounting (financial) reports, internal audit or as an auditor in an audit organization or auditor – employee of an auditing organization, (employee of an auditor – individual entrepreneur) or as auditor – individual entrepreneur carrying out auditing in banks, non-bank credit and financial organizations, sufficient theoretical and practical knowledge;

for the deputy chief accountant of a bank – higher education, special training in the field of international financial reporting standards, work experience of at least two years in a bank, non-bank credit and financial organization, and/or the National Bank in the field of accounting, accounting (financial) reports, internal audit or as an auditor in an audit organization or auditor – employee of an auditing organization, (employee of an auditor – individual entrepreneur) or as auditor – individual entrepreneur carrying out auditing in banks, non-bank credit and financial organizations, sufficient theoretical and practical knowledge.

Verification of sufficiency of theoretical and practical knowledge of persons indicated in part ten of this Article, is carried out in the form of testing and/or interview, held in the order provided by the National Bank.

Requirements to the business reputation are:

absence of non-cleared or non-expunged record of conviction for crimes against property and the order of carrying out economic activity;

absence during the last two years of facts of termination of employment contract on the initiative of the employer in the case when the persons referred to in part ten of this Article committed guilty acts being the grounds for the loss of credibility on the part of the employer;

absence of facts, established by a court decision, of wrongful actions that entailed the bankruptcy of a legal person.

The National Bank is entitled to establish qualification requirements to independent directors and/or other members of the board of directors (supervisory board) as well as additional qualification requirements and requirements to business reputation to the persons specified in part ten of this Article.

While concluding a labour contract with the head, chief accountant of the bank, their deputies, members of the collective executive body of the bank, the bank is obliged to require and the mentioned persons – to present a document on passing the assessment of conformity with qualification requirements, and/or requirements to business reputation, issued by the National Bank.

A bank is required to dismiss the head, chief accountant, their deputies, a member of the collegial executive body of the bank in case if the document on passing the assessment of their conformity with the qualification requirements, and/or requirements to business reputation has become ineffective on the grounds and in the order established by the National Bank.

The bank is obliged to appoint an official responsible for managing risks in the bank, and also to appoint officials and/or to establish a permanently functioning division (divisions) on management of special types of risks in accordance with the nature and volume of performed bank operations and other activities. The official responsible for managing risks in the bank reports directly to the head of the bank and is accountable to the board of directors (supervisory board).

A bank is obliged to appoint an official responsible for internal control in the bank, to create a special division on preventing the legalization of profit obtained from crime, financing terrorist activity and financing proliferation of arms of mass destruction, and also to appoint officials and/or to create a permanently acting division (divisions) for the implementation of the internal control according to the nature and volume of performed banking operations and other activities. The official responsible for internal control in the bank reports directly to the head of the bank and is accountable to the board of directors (supervisory board).

Accountability of the official responsible for risk management in the bank, and the official responsible for internal control in the bank, to the board of directors (supervisory board) means:

appointment and release of such persons from office with the approval of the board of directors (supervisory board);

determination by the board of directors (supervisory board) of the conditions of remuneration of such persons;

regular review by the board of directors (supervisory board) of reports of such persons.

The head organization of a bank group and/or bank holding is obliged to organize the system of risk management and internal control system in the bank group and/or bank holding on a consolidated basis. Requirements to the organization of the system of risk management and system of internal control in a bank group and/or bank holding shall be established by the National Bank.

A bank is obliged to establish internal audit service which is accountable in its activity to the board of directors (supervisory board).

Accountability of the internal audit service to the board of directors (supervisory board) means:

approval by the board of directors (supervisory board) of regulations on internal audit service, changes and/or additions introduced in​​to it;

approval by the board of directors (supervisory board) of the cost estimates of the internal audit service and determination of conditions of remuneration of its head and specialists;

appointment of the head of internal audit service and his release from office with the consent of the board of directors (supervisory board);

approval by the board of directors (supervisory board) of the work plan of the internal audit service;

regular review and approval by the board of directors (supervisory board) of the internal audit service reports.

A bank shall ensure the continuity of activity of the internal audit service, independence, objectivity and professional competence of the head and specialists of the internal audit service, as well as unhindered access of the internal audit service to all bank documentation as well as to conduct of an internal audit of any division or activity direction of the bank.

The bank sets the qualification requirements and requirements for business reputation for heads of affiliates, structural divisions, internal audit service, the official responsible for risk management in the bank, and the official responsible for internal control in the bank.

The National Bank is entitled to impose additional requirements for the organization of corporate management of a bank.

Article 110. Required reserves fund allocated in the National Bank

Banks must deposit a portion of attracted monetary means in the required reserves fund allocated in the National Bank.

The required reserves fund is used for regulating currency circulation in accordance with the objectives and tasks of monetary and credit policy of the Republic of Belarus and for insuring liquidity and solvency of the bank.

Article 111. Safe operation standards established for banks

With a view of ensuring stability of the banking system of the Republic of Belarus, the National Bank establishes the following safe operation standards for banks:

minimum size of regulatory capital;

liquidity standards;

regulatory capital adequacy standards;

standards of limitation of risk concentration;

foreign currency risk restriction standards;

standards of bank participation in authorized funds of other commercial organizations;

other standards necessary to limit risks of bank activities and to ensure secure and reliable functioning of banks.

The National Bank determines methods to calculate the regulatory capital of a bank, its assets, liabilities and operations not reflected in the balance sheet, for each of standards of safe functioning, having regard to the international standards and consultations with banks, bank unions and associations.

The National Bank is entitled, on the basis of a reasoned judgment, to change for a bank the value of standards of safe functioning and/or methods of calculation of the regulatory capital of the bank, its risks, assets, liabilities and operations that are not reflected on the balance sheet, for individual standards of safe functioning and/or set other (additional) standards of safe functioning.

The National Bank informs banks on forthcoming changes of safe operation standards and methods of calculation thereof at least one month prior to putting them into force.

The National Bank in the order established by it, is entitled, on the basis of a reasoned judgment and/or techniques established by it, to determine the amount of the regulatory capital of the bank, its risks, assets, liabilities and operations that are not reflected on the balance sheet. The bank is obliged to reflect in its books the amount of the regulatory capital, risks, assets, liabilities and operations that are not reflected on the balance, determined by the National Bank in accordance with the requirements of this Article.

The National Bank establishes safe operation standards for non-bank credit and financial organizations depending on the list of banking operations those organizations may carry out.

Article 112. Size of regulatory capital

The size of the regulatory capital is established as a sum of the authorized fund, other funds, emission profit and undivided profits with the increase on a range of other constituent elements of the regulatory capital of a bank, the list and order of the calculation of which are determined by the National bank. Component elements of the regulatory capital of a bank are determined on the ability to cover the losses of the bank.

The regulatory capital of the bank is decreased by the amount on which special reserves, provided by part six of Article 109 of this Code are not created and by a number of other deductions, the list and order of calculation of which are determined by the National Bank.

Article 113. Liquidity standards

Liquidity standards of a bank are established as a ratio of assets, liabilities and operations not reflected on the balance sheet, having regard to the time-limits, sums, types of assets, liabilities, operations not reflected on the balance sheet and also other factors determined by the National Bank.

Article 114. Regulatory capital adequacy standards

Regulatory capital adequacy standards of a bank are established as a maximum ratio of the size of (part of) regulatory capital to risks accepted by the bank.

Article 115. Risk concentration restriction standards

The risk concentration restriction standards are established as a percentage of regulatory capital of a bank.

With a view of restriction of banks credit risks, standards of maximum exposure to a debtor, insider (group of interconnected debtors), insider (group of interconnected debtors), as well as standards of total of large exposures and of total of exposures to insiders and persons interconnected with the latter, are established.

While determining an exposure to a debtor it shall be taken in consideration total of credits and other monetary obligations of the debtor in relation to the bank, as well as off-balance-sheet obligations of the bank in relation to the debtor which envisage the fulfilment in monetary form.

A large exposure to a debtor is considered an exposure exceeding the percentage ratio to the regulatory capital of the bank established by the National Bank.

The National Bank establishes differentiated standards of restriction of exposure concentration concerning the debtors being the insiders of the bank and of persons interconnected with them.

Interconnected debtors are considered natural and legal persons – bank’s debtors connected economically and/or legally in such a way that deterioration of the financial standing of one debtor entails or makes likely the deterioration of the financial standing another debtor (debtors). Interconnected debtors may be understood to be persons that have property in common ownership, mutual guarantees and/or obligations between them, that simultaneously occupy executive positions at two or more other debtors; a legal person and a natural person that occupies an executive position in this legal person; persons that carry out joint activity, related through a common object of crediting and/or investment project, with the exception of interbank crediting; spouses; persons that have close ties of kinship or affinity; persons being in relation to each other a legal person and a person that has the right to give instructions binding for such a legal person or has a possibility to determine otherwise its actions, including being parent economic company or partnership and a subsidiary company, dependent economic companies, unitary enterprise and owner of its property; and also other persons recognized as such on a basis of a reasoned opinion of the bank.

Insiders are deemed to be natural and legal persons that can influence the decision on performing a bank operation credit constituting an exposure and/or other action without having regard to the interests of the bank by virtue of connection with the bank and/or a shareholder of the bank, and/or with a beneficiary owner of the bank, and/or members of governing bodies of the bank. Insiders may be considered to be shareholders and other beneficiary owners of the bank who posses at least five percent of bank shares, members of governing bodies of the bank, with the exception of the general meeting of shareholders, members of the credit council (committee), heads of separate and structural divisions of the bank, and also other persons recognized as such on a basis of a reasoned opinion of the bank.

To insiders pertain also natural persons being in a marriage with, close relatives or affinity of natural persons specified in part 7 of this Article. Natural persons being insiders of the bank in accordance with part seven of this Article remain considered insiders within one year from the moment of losing connection with the bank.

The National Bank is entitled, on the basis of a reasoned opinion and/or methodology established by it, to assess the relationships of bank debtors between them and also with the bank, its shareholders, beneficiary owners and/or members of governing bodies of the bank and to recognize the mentioned persons to be interconnected debtors and/or insiders of the bank. The decision on recognition of such persons to be interconnected debtors and/or insiders is taken by the National Bank in the order established by it. The bank is obliged to calculate the amount of exposure, reflect it in its reports and also to take measures to limit it and comply with the standards of risk concentration restriction having regard to the recognition by the National bank of mentioned persons to be interconnected debtors and/or insiders of the bank in accordance with the requirements of this Article.

Article 116. Foreign currency risk restriction standards

The National Bank establishes standards of an open foreign currency position on foreign currency risk as a percentage to the regulatory capital of a bank.

Article 117. Standards of bank participation in authorized funds of other commercial organizations

The National Bank establishes the following standards as a maximum percentage ration to the regulatory capital of a bank:

standard of the bank’s participation in the authorized fund of one commercial organization;

standard of the total bank’s participation in authorized funds of all commercial organizations;

standard of the total bank’s participation in authorized funds of commercial organizations the main activity of which is not banking and/or financial activity.

The list of activities related to financial activities for calculation of the total value of the bank's participation in authorized funds of commercial organizations, as well as the procedure for determining the main activity of a commercial organization are e established by the National Bank.

Article 118. Safe operation standards established for the purposes of carrying out bank supervision on a consolidated basis

The National Bank may establish for bank groups the following safe operation standards: of liquidity, regulatory capital adequacy, risk concentration restriction, currency risk restriction. The duty to comply with the indicated safe operation standards is imposed on the head organization of the bank group.

Insiders of a bank group are deemed to be insiders of all banks, non-bank credit and financial organizations, recognized as being part of such a bank group.

For bank holdings, safe operation standards indicated in part one of this Article may be established by the National Bank provided that head organizations of such holdings are a bank or a non-bank credit and financial organization. The duty on fulfilling the safe operation standard established by the National Bank for a bank holding is imposed on the head organization of such a holding.

Insiders of a bank holding are deemed to be insiders of the bank, non-bank credit and financial organization and other legal persons not being banks or non-bank credit and financial organizations and recognized in accordance with this Code to be part of such a bank holding. The order for determining persons being insiders of legal persons not being banks or non-bank credit and financial organizations is established by the National Bank.

For banks, non-bank credit and financial organizations being recognized as part of a bank group and/or a bank holding, safe operation standards are established by the National Bank having regard to risks connected with exerting by other legal persons of substantial influence on decisions taken by governing bodies of such banks, non-bank credit and financial organizations, and also connected with the possibility exerting by such banks substantial influence on the decisions taken by governing bodies of other legal persons.

The National Bank is entitled, on the basis of a reasoned judgment, to change for a bank the value of safe operation standards and/or methods of calculation of the regulatory capital of the bank group, bank holding, risks, assets, liabilities and operations that are not reflected on the balance sheet, for certain safe operation standards and/or set other (additional) safe operation standards.

The National Bank, in the order established by it, is entitled, on the basis of a reasoned judgment and/or methodologies established by it, to determine the amount of the regulatory capital of a bank group, bank holding, its risks, assets, liabilities and operations that are not reflected on the balance sheet. The head organization of a bank group, bank holding is obliged to reflect in the consolidated reports on activities of the bank group and/or bank holding the amount of the regulatory capital, risks, assets, liabilities and operations that are not reflected on the balance sheet, determined by the National Bank in accordance with the requirements of this Article.

Article 1181. Informing the National Bank

A bank is obliged, within five working days, to inform the National Bank about:

appointment (election), transfer and dismissal (release from office) of a member of the board of directors (supervisory board), the collegial executive body, the head, the chief accountant, their deputies, the official responsible for risk management in the bank, the official responsible for internal control of the bank, and the head of internal audit service;

facts of inconformity of a member of the board of directors (supervisory board), the collegial executive body, the head, the chief accountant, their deputies to the established requirements to business reputation;

changes in the composition of the beneficial owners being as such in respect of at least five percent of the shares of the bank;

establishment, change of location and closing of structural divisions, including those mobiles and situated outside the bank’s location and not having independent balance sheet, its subsidiary, and also of remote workplaces, carrying out banking operations and/or other activity;

losses (expenses) in the sum exceeding five percent of the bank's regulatory capital;

existence of grounds for application of measures to prevent the bankruptcy of the bank, provided by the legislation on economic insolvency (bankruptcy);

termination of banking operations specified in the issued license to carry out banking activities;

other changes in its activities, organizational structure and ownership structure, general situation, significant adverse events in the cases determined by the National Bank.

Article 119. Reports to be submitted to the National Bank

A bank shall draw up and submit reports on its activity to the National Bank in the order and volume, established by the legislative acts of the Republic of Belarus and/or National Bank.

For the purposes of supervision of banking activities on a consolidated basis, the head organization of a bank group and/or bank holding shall submit to the National Bank, in the order and volume established by it, consolidated reports on activities respectively of the bank group and/or bank holding.

Article 1191. Information disclosure

A bank is obliged to disclose the information on its activity by means of its publication, placement in the premises belonging to it or on its official site in the global computer network Internet, presentation on demand of customers and other interested users in the amount and the order, established by the National bank.

A bank publishes, in the amount and in the order established by the National Bank, in the printed mass media determined by the National Bank, and places on its official site in the global computer network Internet reports on its activities and the annual accounting (financial) reports together with the audit report made according to results of their audit.

The head organization of a bank group and/or a bank holding is obliged to disclose information on the activities of the bank group and/or a bank holding by means of its publication, placing on its official site in the global computer network Internet in the amount and the order established by the National Bank.

The head organization of a bank group and/or a bank holding publishes, in the amount and order established by the National Bank, in printed mass media determined by the National Bank and place on its official site in the global computer network Internet its consolidated reports on activities of the bank group and/or the bank holding, and also annual consolidated accounting (financial) reports together with the audit report made according to results of their audit.

Article 120. Guarantees for repayment of means attracted by banks from natural persons

The State shall encourage and protect the savings of citizens and guarantee conditions for the return of deposits.

To ensure guarantees of the repayment of means attracted by banks from natural persons and compensation for loss of income on deposited means, various forms of guaranteeing repayment of such means may be developed in accordance with legislation of the Republic of Belarus.

Article 121. Bank secrecy

Data on accounts and deposits, including data on availability of an account with a bank (non-bank credit and financial organization), account holder, account number, and other details of the account, amounts of balances of accounts and deposits, as well as data on particular transactions, on operations without opening an account, operations on accounts and deposits, and property stored at the bank constitute bank secrecy and may not be disclosed.

The National Bank and other banks guarantee non-disclosure of bank secrecy of their customers and correspondent banks. Employees of the National Bank and other banks are obliged to preserve bank secrecy except for the cases stipulated by this Code and other legislative acts of the Republic of Belarus.

Data constituting bank secrecy of legal persons and individual entrepreneurs are presented by a bank to said persons and their authorized representatives, any third persons on the basis of a written consent of such persons personally given by them to the bank, in the volume necessary for fulfilling the contract on rendering audit services – to audit organizations (auditors – individual entrepreneurs) which render audit services tothe legal person or individual entrepreneur. In the cases provided by the legislative acts of the Republic of Belarus, data constituting the bank secrecy of legal persons and individual entrepreneurs are presented by the bank:

to courts – with respect to cases being under their proceedings;

to court executors – with respect to court resolutions and other execution documents being in their proceedings;

to a public prosecutor, or his deputy, and also, with the authorization of a public prosecutor or his deputy, to bodies of inquiry and preliminary investigation with respect to materials and cases under their consideration;

with the sanction of a prosecutor or his deputy – to special units fighting against corruption and organized crime, divisions of the bodies of internal affairs to combat economic crime;

bodies of the Committee of State Control of the Republic of Belarus;

bodies of state securities of the Republic of Belarus;

tax and customs bodies;

notaries for execution of notarial actions;

to the National Bank.

Banks must submit data on accounts of central bodies of state administration, other legal persons and individual entrepreneurs that make use of budgetary means and/or means of state non-budgetary funds, and receiving (having received) means on state external credits and/or other means against guarantees of the Government of the Republic of Belarus, guarantees (sureties) of local executive and administrative bodies to the Ministry of Finance of the Republic of Belarus and to local financial authorities.

Data constituting bank secrecy of natural persons, with the exception of individual entrepreneurs, are presented by the bank to said persons and their authorized representatives, on the basis of a written consent of such persons personally submitted to the bank – to any third person. In the cases provided by the legislative acts of the Republic of Belarus, data constituting the bank secrecy of legal persons, with the exception of individual entrepreneurs, are presented by the bank:

to courts – with respect to criminal cases under their consideration in connection with which, in accordance with the law of the Republic of Belarus, property could be confiscated and/or other material punishment may be imposed, civil suits considered within criminal proceedings, as well as with respect to cases on administrative offences, civil and economic cases;

to court executors – with respect to court resolutions and other execution documents being in their proceedings;

to a public prosecutor, or his deputy, and also, with the authorization of a public prosecutor or his deputy, to bodies of inquiry and preliminary investigation with respect to materials and cases under their consideration;

to Department of Financial Monitoring of the Committee of State Control of the Republic of Belarus;

notaries for execution of notarial actions;

to the National Bank;

to the organization that carries out the guaranteed compensation of bank deposits of natural persons.

In case of the death of an account holder or depositor, statement on balances of his accounts and/or deposits and/or property stored in the bank is furnished by a bank to persons designated by the account holder or depositor in a testamentary disposition, to notaries – with respect to probation cases under their consideration, and to foreign consular offices – with respect to accounts of foreign citizens.

Data constituting the bank secrecy of natural or legal persons are provided by the bank to persons not indicated in this Article in other cases, if it is stipulated by the legislative acts of the Republic of Belarus.

Data constituting bank secrecy are provided by a bank on the basis of a written request signed by the head of the state body or by an authorized official, authenticated with the official seal and containing references to the provisions of the legislative acts of the Republic of Belarus that give the state body the right to receive such data.

Persons that have received data constituting bank secrecy in accordance with this Article may not disclose it without consent of the account holder and/or depositor or property depositor, except for cases stipulated by legislative acts of the Republic of Belarus, are subject to responsibility for the disclosure of this data in accordance with legislation of the Republic of Belarus.

Article 122. Restrictions of banks activities and their participation in authorized funds of other legal persons

Banks are not entitled to provide:

credits to the Government of the Republic of Belarus;

favourable terms and conditions to insiders and workers of the bank, the National Bank, when carrying out banking operations.

For the purposes of this Article, favourable terms and conditions mean:

conclusion with persons specified in indent three of part one of this Article or in their interest of such a transaction which, with regard to its substance and/or condition(s) the bank did not conclude and/or does not conclude with other customers;

charging persons specified in indent three of part one of this Article remuneration and/or fee for performance of a bank operation in an lower amount than the remuneration and/or fee for performance of that bank operation charged on other customers of the bank.

Transactions with favourable terms and conditions concluded with persons specified in indent three of part one of this Article are void.

The head and the chief accountant of a bank, their deputies, member of a collegial executive body of a bank, the head of a separate and structural division of a bank are not entitled to occupy positions in other commercial organizations whose main activity is a banking and/or financial activity and/or which are insiders of this bank.

Banks is not entitled to reduce the size of their authorized fund without prior written consent of the National Bank.

Participation of a bank in the authorized fund of a legal person, in the cases established by the National bank, is allowed only after obtaining a permission of the National Bank. The permission is issued by the National Bank on the results of the analysis of financial standing of this bank, possibility of management of the acquired shares (parts), influence on its activity and risks of persons, in the authorized funds of which the bank participates.

The founders of a bank have no right to retire from shareholders of the bank within first three years from the day of its state registration unless otherwise provided by this Code.

Article 123. Requirements to the head of a bank, his deputies, members of bank’s collegiate executive body and other persons when bank’s shares are acquired

The head of a bank, his deputies and members of the bank’s collegiate executive body are obliged to notify the National Bank and the executive body of the bank, and in the cases stipulated by legislative acts of the Republic of Belarus also authorized state bodies and other organizations about their acquisition of the bank’s shares and of all their transactions with such shares within five days from the date of conclusion thereof.

Failure of the head of a bank, his deputies, members of the bank’s collegiate executive body to comply with the requirements provided for by part one of this Article entails responsibility in accordance with the legislative acts of the Republic of Belarus.

To acquire into ownership, economic management, operative administration, or to receive into the trust management, as a result of one or more transactions, by a natural or legal person, including a bank shareholder, or a group of natural and/or legal persons interlinked by a contract, or by a group of legal persons that are subsidiaries or dependent in relation to each other, five and more percent of the authorized fund of a bank, as well as all subsequent acquisitions by these persons of shares of the bank, the acquirer and trustee are obliged to obtain permission from the National Bank in the order established by it.

The permission of the National Bank shall state a maximum number or stake of the bank’s shares that may be acquired during a year from the day of issuance of such permission unless another period established in the permission of the National Bank.

Issuance of the permission of the National bank is not allowed if:

acquirer of shares does not meet the requirements set for the founders of a bank, established by the National Bank;

not all documents determined by the National Bank were submitted to obtain the permission from the National Bank;

documents submitted to obtain the permission of the National Bank contain false data;

facts of acquisition of the bank’s shares at the expense of monetary means or other property, not being own means of the acquirer, and/or provided to the acquirer by the bank, and/or provided by other persons in the case if the bank itself profits received from criminal activities when the authorized fund of the bank accepted the risks arising in relation to provision to the acquirer of such monetary means, other property, and/or profits received from criminal activities;

as a result of acquisition of shares, the ownership structure of the bank and/or at least one of its beneficial owners that will possess at least five percent of the shares would not meet the requirements established by the National Bank.

Transactions on acquisition or transfer into trust management of five percent or more of the shares of the bank, made without the authorization of the National Bank, are invalid.

Article 124. Banks’ transactions with own shares

A bank must obtain permission of the National Bank for the purchase of more than 5 percent of the shares issued by the bank

The National Bank is entitled to deny the issuance of the permission for the purchase by the bank of shares issued by it if it leads to a breach of safe operation standards and/or appearance of the grounds for application to the bank of measures on prevention of the bankruptcy, provided by the legislation on economic insolvency (bankruptcy).

The requirements of this Article shall not cover the acquisition by the bank of shares issued by it in the case provided by indent three of part four of Article 1341 of this Code, and at the request of the bank's shareholders in the cases stipulated by the legislation of the Republic of Belarus.

Article 125. Bank activity on attracting deposits and extending credits

Banks independently establish terms of and procedures for attracting monetary means of natural and/or legal persons in deposits and the placement of those monetary means within the limits established by this Code and normative legal acts of the National Bank.

Banks shall ensure access to data regarding the average rates of interest on credits and deposits.

Where the President of the Republic of Belarus or, in the established order, the Government of the Republic of Belarus takes decisions on extending bank credits on preferential terms and conditions or on changing terms and conditions of credits extended earlier for preferential terms and conditions, such banks are compensated for their losses from the sources determined in those decisions or in accordance therewith.

Article 126. Methods of securing fulfilment of obligations under contracts concluded by banks

The fulfilment of obligations under contracts concluded by banks may be secured by a guarantee deposit of money, transfer of legal title in property, including property rights, pledge of immovable and movable property, suretyship, guarantee and other methods stipulated by legislation of the Republic of Belarus or by a contract.

Securing fulfilment of obligations under contracts concluded by banks by a guarantee deposit of money, transfer of a legal title in property, including in property rights, is carried out on conditions stipulated respectively by Articles 148 and 149 of this Code having regard to specific features of legal relationships arising on the basis of such contracts.

CHAPTER 16
IMPOSING ARREST AND LEVYING EXECUTION ON MONETARY MEANS AND OTHER PROPERTY HELD IN BANKS. SUSPENSION OF OPERATIONS ON ACCOUNTS IN BANK

Article 127. General conditions of imposing arrest and levying execution on monetary means and other property held in banks

Arrest on monetary means and other property of a natural person and legal person held on accounts, deposits or stored in a bank may be imposed only in accordance with this Code and other legislative acts of the Republic of Belarus.

Levying execution on monetary means and other property of a natural person and legal person held on accounts, deposits or stored in a bank is allowed in the cases determined by legislative acts of the Republic of Belarus according to:

executive endorsements of notaries and other execution documents;

decision (order) of an authorized state body (official).

When arrest has been imposed on monetary means and other property of a natural person and legal person held on accounts, deposits or stored in a bank, the bank discontinues all debiting operations on accounts of that person and return of property of that person within property limits on which the arrest is imposed unless otherwise stipulated by legislative acts of the Republic of Belarus and relevant decision of an authorized state body (official) on imposing arrest.

Article 128. Imposing arrest and levying execution on monetary means and other property held in banks of a legal person and individual entrepreneur held in a bank

Arrest on monetary means and other property of a legal person and individual entrepreneur held on accounts, deposits or stored in a bank may be imposed only according to:

a court decision (ruling) within the amount of a claim;

a decision of a prosecutor or his deputy, of a body of criminal prosecution in the cases stipulated by the Code of Criminal Procedure of the Republic of Belarus;

an execution document.

Arrest on property of a legal person or individual entrepreneur held on accounts, deposits or stored in a bank may be also imposed by decision of bodies of the Committee of State Control of the Republic of Belarus, customs and taxation bodies in the cases stipulated by legislative acts of the Republic of Belarus.

Article 129. Imposing arrest on monetary means and other property of a natural person held in bank

Arrest on monetary means and other property of a natural person not being individual entrepreneur held on accounts, deposits or stored in a bank may be imposed only according to:

a court resolution (ruling) for the purposes of securing the execution of a court sentence in a criminal case concerning the civil suit, other material punishments or possible confiscation of property; securing execution of a resolution on imposing an administrative penalty, as well as securing claim in civil and economic cases;

a resolution of the court executor – with respect to court resolutions and other execution documents being in his proceedings;

a decision of a prosecutor or his deputy, of a body of criminal prosecution in the cases stipulated by the Code of Criminal Procedure of the Republic of Belarus.

Arrest on monetary means and other property of a natural person not being individual entrepreneur held on accounts, deposits or stored in a bank may be also imposed according to decisions of taxation or customs bodies in the cases stipulated by legislative acts of the Republic of Belarus.

Article 130. Imposing arrest on monetary means and other property of a bank

Imposing arrest on monetary means of a bank is carried out by bank’s transferring monetary means to a special deposit account with the National Bank. The National Bank debits such account in the order established by legislation of the Republic of Belarus.

Imposing arrest on other property of a bank is carried out in order established by legislative acts of the Republic of Belarus.

When securing an action for recovery of monetary means from a bank, the bank is entitled to place on the court’s deposit account the sum of money claimed by the plaintiff.

Imposing arrest on the correspondent account of a bank, suspension or termination of operations on such account are not allowed except for the case of the revocation of the license to carry out banking activities.

Article 131. Confiscation of monetary means and other property of a natural and legal person

Monetary means and other property of a natural and legal person may be confiscated only on the basis of court decision on property confiscation or a court sentence having legal effect.

Article 132. Suspension of operations on accounts in bank

The suspension of operations on accounts in a bank is carried out by authorized state bodies (officials), banks in the cases and the order determined by legislative acts of the Republic of Belarus.

CHAPTER 17
LIABILITY OF SUBJECTS AND PARTICIPANTS OF BANKING RELATIONSHIPS

Article 133. Liability for carrying out banking activities without the license to carry out banking activities

Persons carrying out banking activities without a license to carry out banking activities are liable in accordance with legislation of the Republic of Belarus.

When banking activities are carried out without a license to carry out banking activities, a legal person may be liquidated upon the decision of the economic court of a regions (city of Minsk), and activity of an individual entrepreneur may be terminated in the order established by legislation of the Republic of Belarus.

Incomes received as a result of carrying out banking activities without a license to carry out banking activities and recovered in the established order are to be transferred to the national budget.

Article 134. Measures of supervisory reaction, applied by the National Bank

Measures of supervisory reaction, applied by the National Bank are:

sending of a recommendation to eliminate the detected deficiency not being infringement (hereinafter - shortage) and/or action (omission), which could lead to a situation that threatens the safe operation of the Bank, and/or the interests of its depositors and other creditors, and/or the stability of the banking system, or to avoid such shortage and/or action (omission) in the future;

sending a recommendation on the performance (non-performance) of an action (omission) in order to prevent the emergence of conditions conducive to the violation, and/or a situation that threatens safe operation of the bank, and/or the interests of its depositors and other creditors, and/or the stability of the banking the system;

sending a binding proposal instructions to eliminate a detected violation, and/or to avoid it in the future, and/or to eliminate conditions conducive to the violation;

sending a binding proposal on performance (non-performance) of the action (omission) the duty on performance (non-performance) of which is provided by the legislative acts of the Republic of Belarus and/or the normative legal acts of the National Bank;

sending a binding proposal to suspend or exclude banking operations that expose a bank to a risk;

sending a binding proposal on alienation (in full or in part) of the stake in the authorized fund of a legal person and/or on the exclusion of another reason to exert a substantial influence, directly or indirectly (through third parties), on the decisions taken by the governing bodies of the legal person;

conducting a meeting with representatives of governing bodies of the bank and/or other persons to discuss the financial condition of the bank, level of exposures taken by it, quality of management, prospects of functioning, compliance with the requirements of the legislation of the Republic of Belarus and/or other matters related to the activities of the bank;

requesting a letter providing the duty to eliminate within a certain period of detected violation (shortage) and/or the action (omission) that could lead to a situation that threatens safe operation of the bank, and/or the interests of its depositors and other creditors, and/or stability of the banking system or to avoid such a shortage, and/or action (omission) in the future;

conducting an unscheduled inspection in accordance with the legislation governing the order of organization and conduct of inspections;

change of the set deadline, and/or frequency of reporting to the National Bank and/or the introduction of additional reports;

sending a written notice on the application of a measure of influence;

applying a measure of influence provided by Article 1341 of this Code.

Measures of supervisory reaction, indicated in part one of this Article, are applied by the National Bank in the following order:

those provided by indents two and three of part one of this Article – in respect of banks, persons recognized to make part of a bank group and/or bank holding, and shareholders possessing five percent and more of the bank’s shares;

those provided by indents four to nine of part one of this Article – in respect of banks and persons capable to exert a substantial influence, directly or indirectly (through third parties), on the decisions taken by the governing bodies of a bank and/or another legal person recognized to make part of a bank group and/or bank holding, and shareholders possessing five percent and more of the bank’s shares;

those provided by indent ten of part one of this Article – in accordance with the legislation of the Republic of Belarus governing the order of organization and conduct of inspections;

those provided by indent eleven of part one of this Article – in respect of banks and head organizations of bank groups and/or bank holdings;

those provided by indents twelve and thirteen of part one of this Article – in accordance with Article 1341 of this Code.

The decision of the National Bank on the application of a measure of supervisory reaction is taken on the basis of a reasoned judgment having regard to criteria determined by the National Bank.

The decision of the National Bank on the application of a measure of supervisory reaction may indicate the period of its application and/or the time limit required to eliminate a detected violation (shortage) and/or the action (omission) that could lead to a situation that threatens the safe operation of the bank, and/or the interests of its depositors and other creditors, and/or the stability of the banking system.

The National Bank is entitled to apply on the same ground simultaneously or consecutively several measures of influence and/or of supervisory reaction.

Additional requirements to the order of application by the National Bank of measures supervisory reaction are established by normative legal acts of the National Bank.

The decision of the National Bank on application of a measure of supervisory reaction may be appealed by a person to whom such a measure is applied, in the order established by the legislation of the Republic of Belarus. An appeal against the decision of the National Bank on the application of measures of supervisory reaction does not suspend execution of such a decision.

Article 1341. Measure of influence applied by the National Bank

In the cases stipulated by Article 97 of this Code, the National Bank is entitled to suspend or revoke the license to carry out banking activities, including in the part of carrying out certain banking operations.

In cases provided by the legislation on economic insolvency (bankruptcy), the National Bank is entitled to demand to take measures on improvement of a financial standing of a bank or its reorganization and/or appoint temporal administration for management of the bank.

In case of non-fulfilment by a bank of a binding proposal and/or decision of the National Bank on application of a measure of influence, and/or existence of losses according to the result of the bank’s annual activity, and/or non-compliance by the bank with licensing requirements provided by this Code, and/or detection of a violation (shortage) in the bank’s activity and/or its action (omission) that lead to the situation that threatens safe operation of the bank, and/or its interests of its depositors and other creditors, and/or stability of the banking system, the National Bank is entitled:

to introduce restrictions on carrying out by the bank of certain banking operations, and/or activities;

to demand from bank’s shareholders to take measures to increase the bank's regulatory capital to a size ensuring compliance with safe operation standard established by the National Bank;

to prohibit the distribution of profits among shareholders by declaring and/or payment of dividends;

to change for the bank established size of the safe operation standard and/or to establish an additional safe operation standard;

to increase for the bank the established size of the reserve fund, and/or the amount of deductions to it;

to introduce a ban on opening by the bank of affiliates and/or creation by the bank, its affiliate of structural divisions (including mobile ones) located outside the bank’s location, its affiliate and not having independent balance-sheet, and/or a ban on carrying out by the bank of banking operations on remote workplaces;

to require the removal from office of a member of the board of directors (supervisory board) and/or the collegiate executive body of the bank, the head and/or the chief accountant and/or their deputies;

to demand a repeat passing of the assessment of conformity with qualification requirements, and/or requirements to business reputation of a member of the board of directors (supervisory board) and/or the collegiate executive body of the bank, the head and/or the chief accountant and/or their deputies.

In the case of non-compliance by a shareholder of a bank with a binding proposal of the National Bank and/or the requirements for the founders, shareholders and other beneficial owners of the bank in accordance with this Code, and/or detection in the bank shareholder’s activity of a violation (shortage) and/or action (omission) that lead to the creation of a situation threatening the safe operation of the bank and/or interests of its depositors and other creditors, the National Bank is entitled:

to suspend the right of the shareholder, with the exception of the cases when shares belong to the Republic of Belarus and its administrative and territorial units, to participate in the governing bodies of the bank with the voting right in full or in accordance with the list of issues established by the National Bank;

to require a shareholder, with the exception of the cases when shares belong to the Republic of Belarus and its administrative and territorial units, to alienate (in full or in part) of bank’s shares. In this instance, if shares were not realized within the established period, that may not be less than three months, the shareholder must sell and the bank must buy such shares from him on their nominal value. Upon refusal of one of the parties, the other party and also the National Bank are entitled to appeal to the court with a claim to compel to the conclusion of the contract.

In case of non-fulfilment by a person recognized to be a part of a bank group and/or bank holding of a binding proposal and/or a decision of the National Bank on application of a measure of influence towards it, and/or violation of other requirements of the banking legislation, and/or detection in the activity of such person of a violation (shortage) and/or action (omission) leading to the creation of a situation threatening safe functioning of the bank recognized to be a part of the same bank group and/or bank holding, and/or interests of its depositors and other creditors, and/or stability of the bank system, as well as in case of noncompliance by a bank group and /or bank holding of safe operation standards established for bank groups and/or bank holdings, the National Bank is entitled:

to change for a bank group and /or a bank holding company established size of safe operation standard and /or to establish and additional safe operation standard;

to require from a person recognized to be a part of a bank group and /or a bank holding to alienate (full or partial) the stake in the authorized fund of a legal person recognized to be a part of the same bank group and /or a bank holding company, and/or to exclude another ground for exerting substantial influence, directly or indirectly (through third parties), on the decisions taken by the governing bodies of such a legal person.

Measures of influence may be applied by the National Bank, if since the day of violation that constituted the ground for their application, three years, or from the day of its detection – six months, have not expired.

Article 135. Liability of bank or non-bank credit and financial organization for damage to depositors and other creditors

A bank and a non-bank credit and financial organization are liable for non-fulfilment (improper fulfilment) of their obligations in compliance with legislation of the Republic of Belarus and having regard to the specifics provided by this Code.

A bank or a non-bank credit and financial organization are not liable for damage to depositors and other creditors by non-fulfilment (improper fulfilment) of their obligations thereto, if such non-fulfilment (improper fulfilment) has been caused by force majeure and also in the cases provided by part two of Article 136 of this Code.

Officials of a bank or non-bank credit and financial organization are liable for violation of the established procedure for concluding transactions, as established by the legislation of the Republic of Belarus.

If insolvency (bankruptcy) of a bank or a non-bank credit and financial organization has been prompted by its founders (participant, property owner) or other persons, including the head of the bank or non-bank credit and financial organization, who are authorized to issue instructions binding such bank or non-bank credit and financial organization or otherwise determine its activities, then, should the property of the bank or credit and financial organization be insufficient, subsidiary liability may be imposed on the said persons with respect to its obligations.

Article 136. Liability of the National Bank, banks, or non-bank credit and financial organizations for damage caused as a result of suspension of operations on accounts, imposing arrest or levying execution on monetary means and other property

A bank or a non-bank credit and financial organization bear material liability for damage caused to customers of the bank or non-bank credit and financial organization in the case of imposing arrest on property of the bank or the non-bank credit and financial organization.

The National Bank, banks, and non-bank credit and financial organizations do not bear liability for damage caused as a result of suspension of operations on accounts or levying execution on monetary means and other property of natural persons and legal persons.

SPECIAL PART

SECTION VI.
ACTIVE BANKING OPERATIONS

CHAPTER 18
BANK CREDIT

Article 137. Credit contract

Under a credit contract, a bank or a non-bank credit and financial organization (lender) undertakes to provide monetary means (credit) to another person (borrower) in the amount and on the terms determined by the contract, and the borrower undertakes to repay (reimburse) the credit and interest thereon. In doing so, the creditors are prohibited to charge any additional payments (commissions or other fees) for the use of credit.

Article 138. Determining the day of granting credit

The day of granting credit is considered the day when the amount of credit is credited to the borrower's account or transferred by a bank in payment of settlement documents presented by the borrower, or used in compliance with instructions of the borrower, or paid to the borrower in cash.

Article 139. Form of credit contract

A credit contract shall be concluded in writing, including by means of using systems of distance bank servicing.

In case of non-observance of the written form of a credit contract; such credit contract is null and void.

Article 140. Material terms of credit contract

The material terms of a credit contract are terms concerning:

the sum of credit with indication of the credit currency (for a credit line, maximum amount of the monetary means granted to the borrower and the maximum limit of outstanding indebtedness of the borrower);

the term and procedure for granting and repayment (reimbursement) of the credit;

the interest on credit and procedure for payment thereof, with the exception of the cases of granting credit on preferential terms on the basis of decisions taken by the President of the Republic of Belarus or, in the established order, by the Government of the Republic of Belarus;

purposes for which the borrower undertakes to use or not to use granted monetary means (intended use of the credit), in the case stipulated by part two of Article 144 of this Code;

liability of the lender and the borrower for non-fulfilment of the obligations under the credit contract;

other and conditions to be agreed upon according to a declaration of one of the parties.

Article 1401. Right of the borrower to receive document confirming the fact of conclusion of the credit contract

The borrower is entitled to request and the lender is obliged to provide upon request of the borrower on the day of application, unless another time limit established by legislation of the Republic Belarus and/or contract, a document confirming the  fact of conclusion of the credit contract containing data about its material terms, and also other data concerning that contract – in the event of conclusion of the credit contract by means of using systems of distance bank servicing.

Article 141. Lender's refusal to enter into credit contract

A lender is entitled to refuse to conclude a credit contract if there is data evidencing that the amount of the credit extended to the borrower will not be repaid (reimbursed) on time, if the borrower fails to provide security for the fulfilment of the obligations under credit contract, if the economic court of a region (city of Minsk) has taken decision on bankruptcy with liquidation (termination of activities) of the borrower, or if there are any other grounds which could influence the fulfilment by the borrower of the obligations under the credit contract or are stipulated by legislation of the Republic of Belarus.

The lender is entitled to refuse to fulfil the obligations under the credit contract if the borrower has not fulfilled its obligations under such contract.

Article 142. Borrower's refusal to receive credit

After a credit contract has been concluded, the borrower is entitled to refuse, unless otherwise stipulated by the legislation of the Republic of Belarus or the credit contract, to receive credit, in whole or in part, notifying the lender prior to the date of granting credit established in the contract.

Article 143. Repayment of credit before maturity

A credit may be repaid (reimbursed) before maturity, subject to the terms and conditions stipulated by the credit contract. In case if the credit contact does not provide for a repayment (reimbursement) of the credit before maturity, such credit may be repaid (reimbursed) before maturity only with the consent of the lender.

When the borrower fails to fulfil (improperly fulfils) his obligations under the credit contract, the lender may demand repayment (reimbursement) of the credit before maturity.

Article 144. Intended use of credit

A credit contract may be concluded with the condition of intended use of the credit.

A credit contract stipulating granting credit against the guarantee of the Government of the Republic of Belarus, a guarantee (suretyship) of a local executive and administrative body must contain the condition of intended use of the credit.

If a credit contract has been concluded with the condition of intended use of the credit, the lender is obliged to ensure to the lender a possibility to control the intended use of the credit.

When the borrower fails to fulfil the condition of intended use of the credit of the credit contract and/or the duties stipulated by part three of this Article, the lender is entitled, unless otherwise stipulated by the credit contract, to demand the repayment (reimbursement) of the credit before maturity, payment of interest due and/or to refuse to further credit the borrower under this contract.

Article 145. Interest for using credit

The lender is obliged, prior to the conclusion of a credit contract, to bring to notice of each borrower the information on the interest rate for using credit.

The amount of interest for using credit may be determined with application of a fixed annual interest rate or variable annual interest rate.

The amount of the fixed annual interest rate shall be stipulated in the credit contract at its conclusion and is to be constant during the term of validity of the credit contract.

The amount of the variable interest rate changes in the order agreed between the parties at the conclusion of the credit contract, and may not be changed unilaterally.

The lender determines, at the conclusion of a credit contract with a borrower, independently the amount, frequency of charging and periods of interest payment for using credit.

The parties are entitled to foresee in a credit contract the order under which the interest for using credit shall be paid in full on the day of repayment (reimbursement) of the credit or in equal parts during the period of repayment (reimbursement), unless otherwise provided by the President of the Republic of Belarus or, in the established order, by the Government of the Republic of Belarus.

Interest for using credit is charged from the day following the day of granting credit until the day of repayment (reimbursement) of the credit inclusively.

Payment of the interest for using credit on the day of granting a credit is not allowed.

The day of repayment (reimbursement) of a credit, payment of interest for using credit is deemed to be the day on which the means are credited to the account of the lender or paid in cash.

A borrower which fails to repay (reimburse) the credit on time is obliged to pay the interest at a higher rate, determined in the credit contract, during the period from the day following the day of repayment (reimbursement) until its full repayment (reimbursement), unless other rate is provided by the legislation of the Republic of Belarus.

When the means are not sufficient for the fulfilment of the obligations under a credit contract in full, the borrower shall reimburse in the first place the expenses of the bank relative to the fulfilment of the obligation, in the second place – the principal of the credit, then interest due for using the credit, in the third place – shall fulfil other obligations under the credit contract, unless otherwise provided by the President of the Republic of Belarus.

The credit contract may provide for the liability of the borrower for untimely late payment of the interest for using credit.

Article 146. Insurance by the lender of the risk of non-repayment (non-reimbursement) of credit and/or of untimely repayment (reimbursement) of credit

Under a contract of insurance of risk of non-repayment (non-reimbursement) and/or of untimely repayment (reimbursement) of credit, the insurance organization (insurer) undertakes to indemnify the insured (lender) against the damage caused to its material interests by non-repayment (non-reimbursement) and/or of untimely repayment (reimbursement) of credit. Under such contract, as the insured may act a bank or non-bank credit and financial organization being lenders.

Unless otherwise stipulated by the insurance contract, the insurer which has paid insurance compensation to the insured (lender) receives, within the limits of the paid compensation, the right of the insured (lender) to damage compensation (subrogation).

Article 147. Methods of securing fulfilment of obligations under credit contract

The fulfilment of obligations under a credit contract can be secured by a guarantee cash deposit, transfer of the legal title to property, including property rights, to the lender, pledge of movable and immovable property, suretyship, guarantee, and other methods stipulated by legislation of the Republic of Belarus or contract.

Article 148. Guarantee cash deposit

To guarantee the fulfilment of obligations under a credit contract, a borrower or a third person may transfer means in Belarusian roubles or foreign currency to the lender. The interest is not charged on the guarantee cash deposit unless otherwise stipulated by the contract. Means transferable as a guarantee of fulfilment of obligations under the credit contract may be held in accounts opened by the lender. If the borrower fails to fulfil his obligations under the credit contract, the lender is entitled to satisfy his claims at the expense of deposited means.

If the credit currency is other than that of the guarantee cash deposit, the rate of conversion is determined by an agreement between the parties. If the parties fail to come to an agreement, the dispute on the conversion rate is to be decided in the court.

Articles 179 to 188 of this Code do not cover the guarantee cash deposit, unless otherwise stipulated by the contract.

Article 149. Transfer of legal title to property to lender

To secure the fulfilment of obligations under a credit contract, the legal title to the property belonging to the borrower or a third person on the right of ownership, on the right of economic management or on the right of operative administration, including to property rights, may, based on a separate contract, be transferred to the lender unless the right to the transfer of the legal title is restricted by the property owner or legislation of the Republic of Belarus.

The contract on the transfer of the legal title to the property, including to the property rights, must stipulate the right of the borrower to repurchase the property transferred to the lender by repaying the credit (right of redemption) within the time period for repayment (reimbursement) of the credit determined in the credit contract. The lender may not to alienate the property before the expiration of the time period for the exercise of the right to repurchase.

The transfer of the legal title to the property does not entails an obligatory delivery of the property unless otherwise stipulated by the contract. In the event when the property is to be delivered to the lender in accordance with terms and conditions of the contract on the transfer of the legal title to the property, the lender is obliged to possess, use and dispose of the property within the limits determined by the contract on the transfer of the legal title to the property.

The lenders obtains the right of ownership, the right of economic management or the right of operative administration of the property, including to the property rights, if the borrower fails to repay (reimburse) the credit within time period established by the credit contract. When the value of the property specified in the contract on the transfer of the legal title to the property exceeds the amount of claims of the lender under the credit contract, the lender is obliged to pay the difference within the time period established by such contract.

Relationships between the borrower and the lender under the contract on the transfer of the legal title to the property, including to the property rights, which are not regulated by this Article are regulated by norms of legislation of the Republic of Belarus on a purchase/sale contract. In cases stipulated by legislation of the Republic of Belarus, contracts providing for the transfer of a legal title the property, including to the property rights, are subject to state registration in the manner prescribed by purchase/sale contracts.

Article 150. [Excluded]

Article 151. Line of credit

When opening a line of credit, the borrower has the right, in accordance with the credit contract, to obtain and use credit during a determined time period within an established maximum amount (limit) of the credit subject to compliance with the maximum amount (limit) of outstanding indebtedness on the credit.

Article 152. Inter-bank credit contract

An inter-bank credit contract means a credit contract which establishes relations between banks with respect to mutual lending the specifics of which are determined by the National Bank.

Unless otherwise stipulated by the National Bank or credit contract, the provisions of this Chapter relating to methods of securing the fulfilment of obligations and form of the credit contract are not applied to an inter-bank credit contract.

CHAPTER 19
CONTRACT OF FINANCING AGAINST ASSIGNMENT OF MONETARY CLAIM (FACTORING CONTRACT)

Article 153. Contract of financing against assignment of monetary claim (factoring contract)

Under a contract of financing against assignment of monetary claim (hereinafter – factoring contract) one party (factor), bank or non-bank credit and financial organization, undertakes to the other party (creditor) to enter into a monetary obligation between the creditor and the debtor on the creditor's side by repaying the creditor the sum of the debtor’s monetary obligation at a discount. A discount means the difference between the sum of the monetary obligation of the debtor and the sum payable by the factor to the creditor.

The monetary obligation may be assigned by the creditor to the factor also for the purposes of securing the fulfilment of the obligations of the creditor before the factor.

The size of the discount, the method of its calculation and payment procedures are determined in the factoring contract. Factoring contract terms may additionally provide for other types of remuneration charged by the factor for rendering to the creditor other financial services related to the monetary claims being the object of assignment.

Article 154. Classification of factoring contracts

Under a factoring contract:

the debtor may be notified of the conclusion of the factoring contract under which creditor’s rights have been transferred to the factor (open factoring);

the debtor may be not notified of the conclusion of the factoring contract under which creditor’s rights have been transferred to the factor (confidential factoring).

Factoring contracts may be classified as to:

place of factoring: domestic if parties to a factoring contract are residents, international if one of the parties to a factoring contract is non-resident;

terms of payment: contracts without recourse when the factor bears the risk on non-payment of monetary claims by the debtor; with recourse when the creditor bears the risk of non-payment of monetary claims by the debtor.

Article 155. Subject of assignment under factoring contract

A subject of assignment under a factoring contract may be both a matured monetary claim (existing monetary claim) and monetary claim that will mature in the future (future monetary claim).

When a future monetary claim has been assigned, the factor is entitled to demand its fulfilment only upon maturity of such a claim. At that, if the maturity is subject to a specific circumstance (event), the factor is entitled to demand the fulfilment of the assigned monetary claim only upon the occurrence of such circumstance (event).

For cases stipulated in part two of this Article, no additional formalization of the monetary claim assignment is required.

Article 156. Fulfilment of monetary claim by debtor

The debtor is obliged to fulfil monetary claim to the factor provided that he has been notified in writing by the creditor or factor of the assignment of the monetary claim with indication of the monetary claim to be fulfilled and the bank or non-bank credit and financial organization acting as factor.

The fulfilment of the monetary claim by the debtor to the factor is deemed the fulfilment to an appropriate creditor and exempts the debtor from the fulfilment of the corresponding obligation before the creditor.

Article 157. Agreement on prohibiting (limiting) assignment of monetary claim

Assignment of monetary claims to the factor is valid even if there is an agreement between the creditor and the debtor on prohibiting (limiting) the assignment.

The provision of part one of this Article does not exempt the creditor which has breached the agreement on prohibiting (limiting) the assignment of monetary claim from obligations or liability before the debtor in connection with such assignment.

Article 158. Subsequent assignment of monetary claim

Unless otherwise stipulated by a factoring contract, subsequent assignment of monetary claim by the factor is not allowed.

If subsequent assignment of a monetary claim is permitted by the factoring contract, and the monetary claim has been assigned to a bank or non-bank credit and financial organization, relationships of the parties are regulated by the provisions of this Chapter.

Article 159. Rights of factor to monetary obligation sum paid by debtor

The factor obtains rights to the whole sum of monetary obligation paid by the debtor under the assigned monetary claim, with exception of the case stipulated by part two o this Article.

If the monetary claim towards the debtor has been assigned by the creditor with a view of securing the fulfilment of its obligation to the factor and otherwise not stipulated by the factoring contract, the factor is obliged to present a report to the creditor and pass on to him the sum of monetary obligation in part exceeding the sum of obligations of the creditor before the factor, secured by the assignment of the claim.

Article 160. Counterclaims of debtor against claims of factor

The debtor is entitled to raise for the set-off against the claims of the factor monetary claims based on the contract with the creditor which were available to the debtor by the time written notification of the assignment was received by the debtor and which matured before the receipt of the notification or the maturity of which has been not determined or determined as on call.

The offset of the claims of the debtor based on the breach, by the creditor, of an agreement prohibiting (limiting) assignment of the monetary claim is not allowed.

Article 161. Repayment to debtor of monetary obligation sum paid to factor

Where a creditor violates his obligations under a contract concluded with a debtor, the debtor is not entitled to demand repayment of the monetary obligation sum paid to the factor under the assigned monetary claim, provided the debtor is entitled to receive such sum directly from the creditor, except where the factor fails to provide the creditor with the sum of the monetary obligation related to the assignment of monetary claim.

Article 162. Creditor's liability to factor

The creditor is obliged to prove validity of the assigned monetary claim by documents evidencing his claim to the debtor and bears the liability before the factor for the validity of the assigned monetary claim.

Assigned monetary claim is deemed to be valid if the creditor has the right to assign it and at the moment of assignment he is not aware of any circumstances based on which the debtor is entitled not to fulfil such claim.

In the case of invalidity of the assigned monetary claim the factor obtains the right of recourse to the creditor irrespective of terms and conditions of the payment.

Under a factoring contract without recourse, the creditor is not liable for the non-fulfilment ( undue fulfilment) by the debtor of the assigned monetary claim.

Under a factoring contract with recourse, the factor is entitled to raise before the creditor the demand on reimbursement of:

the sum of monetary obligation not paid by the debtor and losses incurred in the case when the debtor has not paid to the factor the monetary obligation sum due to the latter under the assigned monetary claim or the paid sum is less than the sum due;

losses incurred in the case when the debtor has delayed the payment to the factor of the monetary obligation sum due to the latter under the assigned monetary claim.

Article 163. Undisclosed factoring

Under an undisclosed factoring contract, the fulfilment by the debtor of the monetary claim to the creditor is considered the fulfilment to an appropriate creditor.

Relationships under an undisclosed factoring contract are regulated by the rules of factoring specified in Articles 153, 155, and 157 to 162 of this Code, unless otherwise stipulated by the contract or follows from the nature of the transaction.

CHAPTER 20
BANK GUARANTEE. SURETYSHIP

Article 164. Concept of bank guarantee

By virtue of a bank guarantee, a bank or a non-bank credit and financial organization (guarantor) gives in its own name at the request of another person (principal or another instructing party) a written undertaking to pay the principal's creditor (beneficiary) an monetary amount (make the payment) in accordance with the terms and conditions of the guarantee.

The instructing party means a principal, unless otherwise provided by the legislative acts of the Republic of Belarus, and also a bank or another person, different from the guarantor (counter-guarantor), which give instructions to a bank or non-bank credit and financial organization to issue a guarantee (counter-guarantee) and are responsible for the reimbursement of the paid sums under the guarantee (counter-guarantee) to the guarantor (counter-guarantor).

Depending on the parties participating in the obligation, a bank guarantee may be a counter-guarantee or syndicated guarantee.

A counter-guarantee means counter obligation provided by the counter-guarantor to the bank or non-bank credit and financial organization to secure the issuance of the primary guarantee.

A syndicated guarantee means a bank guarantee issued to a beneficiary by several guarantors through a main bank-guarantor or non-bank credit and financial organization – guarantor.

Specific features of issuance of a bank guarantee to secure the fulfilment of obligations on bonds are established by the legislation on securities.

Article 165. Terms and form of bank guarantee

The terms of a bank are:

name of the principal;

name of the beneficiary;

name of the guarantor;

contract or another document stipulating the need to issue the bank guarantee;

indication of maximum monetary sum payable;

period for which the guarantee is issued or the circumstance (event) upon occurrence of which the undertaking of the guarantor on the bank guarantee is terminated (validity period of the bank guarantee);

conditions for the payment to the beneficiary of the monetary amount (making the payment).

possibility of a transfer of the bank guarantee (transferable bank guarantee);

other and conditions to be agreed upon according to a declaration of one of the parties.

A bank guarantee must be issued in a written form. An electronic document satisfies the written form requirement for a bank guarantee.

Article 166. Securing by bank guarantee of obligation of principal

A bank guarantee secures the  due fulfilment by the principal of its obligations toward the beneficiary (underlying obligation).

Article 167. Independence of guarantor's undertaking under bank guarantee from underlying obligation

In relations between a guarantor and a beneficiary, the guarantor's obligation to the beneficiary stipulated by a bank guarantee is separate from the underlying obligation for securing which the guarantee has been issued, even if a reference to that obligation is included in the guarantee. Amendment of the underlying obligation after the issue of a guarantee does not create legal consequences for the guarantor, unless otherwise stipulated in the guarantee.

Once a bank guarantee is issued, no further agreements between the guarantor and the principal or another instructing party create legal consequences for the beneficiary.

Article 168. Irrevocability of bank guarantee

A bank guarantee is irrevocable from the moment of its issuance.

Introduction of changes and additions in the bank guarantee after its issuance is allowed with the consent of the beneficiary.

Article 169. Transfer of bank guarantee

Transfer of a bank guarantee is possible, if it contains a provision about its possible transfer. The bank guarantee may be transferred more than once for the whole sum of the guarantee (on the moment of transfer). The bank guarantee may be transferred to a new beneficiary, if the rights on the main transaction pass to him. The guarantor is not obliged to transfer the bank guarantee, unless he expressed his consent thereto.

Transfer of a counter-guarantee is not carried out.

Article 170. Effectiveness of bank guarantee

A bank guarantee comes into effect from the date of the issue, unless otherwise stipulated in the guarantee. The bank guarantee is deemed to be issued from the moment of its sending (transfer) to the beneficiary or another person on the indication of the instructing party.

If a bank guarantee is transferred to the beneficiary by mail or as an electronic document, it is deemed to be issued from the moment of its submission to a communication organization or transmission of the electronic document by the teletransmission system of the sender.

Article 171. Demand of beneficiary under bank guarantee

The beneficiary's demand to pay a monetary amount (make the payment) under a bank guarantee must be presented to the guarantor in a written form. The demand under a bank guarantee must be accompanied by documents specified in the guarantee. The beneficiary shall indicate the nature of the non-fulfilment (undue fulfilment) by the principal of the underlying obligation for securing which the guarantee is issued in the demand or in the documents accompanied it.

The beneficiary's demand must be received by the guarantor not later than the validity term of the bank guarantee.

Article 172. Guarantor's duties upon receipt of beneficiary's demand under bank guarantee

Upon receipt the beneficiary's demand to pay a monetary sum (make the payment) under a bank guarantee, the guarantor is obliged to give notice to the principal or another instructing party of the received demand and deliver to them copies of the demand and documents attached thereto.

The guarantor is obliged to examine the beneficiary's demand and documents attached thereto and determine whether the demand and documents attached thereto comply with the terms of the bank guarantee.

Article 173. Time limit for examining by guarantor beneficiary's demand under bank guarantee

The guarantor is obliged, within not later than five working days following the day of receipt of the beneficiary’s demand to pay a monetary amount (make the payment) and documents attached thereto, to pay to the beneficiary the monetary sum (make the payment) under the bank guarantee or in the event of refusal to pay to give notice thereof to the beneficiary in writing

Article 174. Guarantor's refusal to satisfy beneficiary's demand under bank guarantee

The guarantor refuses to satisfy the beneficiary's demand under a bank guarantee if the demand and/or documents attached thereto do not comply with the terms of the bank guarantee or in the event of termination of the undertaking of the guarantor under the bank guarantee.

Article 175. Limits of guarantor's undertaking under bank guarantee

The guarantor's undertaking toward the beneficiary stipulated by the bank guarantee is limited by the payment of the monetary sum for which such guarantee is issued.

Article 176. Termination of undertaking of guarantor under bank guarantee and of principal under underlying obligation

The guarantor's undertaking to the beneficiary under the bank guarantee terminates:

upon the payment to the beneficiary of the monetary sum for which the guarantee is issued (making the payment);

upon expiry of the period for which the guarantee is issued (validity period) unless otherwise stipulated in the guarantee; In case if the guarantee or counter-guarantee does not indicate the period of its validity, the validity of the guarantee terminates upon expiry of three years from the day of its issuance, and the validity of the counter-guarantee terminates in thirty calendar days after the guaranty lost its effect;

as a consequence of renunciation by the beneficiary of his demand under the bank guarantee by its return to the guarantor;

as a consequence of renunciation by the beneficiary of his demand under the guarantee by sending a written notice to the guarantor of the release from obligations; or

Termination of the guarantor's undertaking to the beneficiary under the bank guarantee on grounds stipulated by indents two, three and five of part one of this Article is not dependent on whether or not the bank guarantee has been returned to the guarantor.

Where a guarantor undertaking to the beneficiary under the bank guarantee is terminated, the guarantor is obliged to give notice thereof to the beneficiary or another instructing party not later than on the working day following the day of termination.

The undertaking of the principal to the beneficiary under the underlying obligation for securing of which the bank guarantee is issued is terminated in the relevant part by the fulfilment by the guarantor of his undertaking to the beneficiary under the bank guarantee.

Article 177. Guarantor’s recourse against principal

Unless otherwise agreed upon between the guarantor and the principal under the bank guarantee, the guarantor obtains no right to recourse against the principal or another instructing party for reimbursement of monetary sums paid to the beneficiary.

The guarantor is not entitled to demand from the principal or another instructing party to reimburse monetary amounts paid to the beneficiary not in accordance with terms of the bank guarantee or for non-fulfilment ( undue fulfilment) of the undertaking of the guarantor toward the beneficiary.

Article 178. Suretyships of bank and non-bank credit and financial organization

A bank or a non-bank credit and financial organization is entitled to undertake toward creditors of another person for the fulfilment by that person of his monetary obligation in whole or in part (issue suretyships) in accordance with legislation of the Republic of Belarus.

SECTION VI
PASSIVE BANKING OPERATIONS

CHAPTER 21
BANK DEPOSIT

Article 179. Concept of bank deposit

A bank deposit is monetary means in Belarusian rubles or foreign currency deposited by natural or legal persons in a bank or non-bank credit and financial organization for the purposes of safekeeping and earning income for a time period or at call or till the occurrence (non-occurrence) of a circumstance (event) determined in the concluded contract.

Article 180. Right to accept monetary means in deposits

Monetary means are accepted in deposits by a bank or a non-bank credit and financial organization having the right to accept monetary means of natural and/or legal persons in deposits on the basis of the license to carry out banking activities. Acceptance of monetary means in deposits are formalized in the form of a bank deposit contract or other contract containing terms and conditions similar to the terms and conditions of a bank deposit contract established by this Code.

Article 181. Contract of bank deposit

Under a bank deposit contract, one party (deposit taker) accepts monetary means, deposit, from the other party (depositor) and undertakes to repay the deposited monetary means, perform cashless settlements at instructions of the depositor in accordance with the contract, and to pay interest thereon in the manner and on the terms and conditions specified in the contract.

The deposit is repaid to the depositor at his request and in the manner specified by this Code and appropriate contract.

Article 182. Types of bank deposit contract

The types of a bank deposit contract are:

a demand bank deposit contract;

a term bank deposit contract;

a conditional bank deposit contract.

A demand band deposit contract is a contract whereby the deposit-taker is obliged to repay deposit and pay interest thereon at the first request of the depositor.

A term bank deposit contract is a contract whereby the deposit-taker is obliged to repay deposit and pay interest thereon at the expiration of the time period specified in the contract.

A conditional bank deposit contract is a contract whereby the deposit-taker is obliged to repay deposit and pay interest thereon upon the occurrence (non-occurrence) of the circumstance (event) specified in the contract.

Article 183. Form of bank deposit contract

A bank deposit contract shall be concluded in writing, including by means of using systems of distance bank servicing.

In case of non-observance of the written form of a bank deposit contract; such contract is null and void.

Article 184. Material terms and conditions of bank deposit contract

Material terms and conditions of a bank deposit contract include:

the currency of deposit and the initial amount of the deposit;

interest on the deposit;

type of the bank deposit contract;

the time of deposit repayment , in respect of a term deposit contract;

circumstance (event) upon occurrence (non-occurrence) the deposit taker undertakes to repay the deposit, in respect of a deposit in escrow contract;

surname, own name, patronymic (if available), identity document details of the natural person, name and place of location of the legal person (place of location of its permanent executive body), in the name of which the deposit is placed;

other and conditions to be agreed upon according to a declaration of one of the parties.

The bank deposit contract concluded with depositor, natural person (with exception of a depositor being individual entrepreneur), besides the terms and conditions determined by part one of this article or other legislation of the Republic of Belarus, shall contain the following material conditions:

the order of placement of monetary means in the deposit;

the order of repayment of monetary means to individuals in the cases of non-fulfilment of the obligation by the deposit-taker or an early termination of the contract;

the liability of the deposit-taker for the non-fulfilment of the obligation.

Article 185. Depositors and theirs rights

Depositors may be both natural and legal persons.

Depositors are free in selecting a bank and/or a non-bank credit and financial organization for depositing their monetary means and may hold deposits with one or more banks and/or with one or more non-bank credit and financial organizations.

Depositors may dispose of their deposits, obtain income thereon, give instructions to the bank or non-bank credit and financial organization on transfer of monetary means from their accounts for deposits to other bank accounts and/or to other persons and make use of other kinds of bank services in accordance with legislation of the Republic of Belarus and bank deposit contract.

Depositors have the right to replenish their deposits on the terms and conditions of an earlier contract, if it is stipulated by terms and conditions of the bank deposit contract.

Charging fees (payment) for placing by a depositor of monetary means in a deposit and completion of the sum of the deposit are not allowed.

The depositor is entitled to request and the bank is obliged to provide upon request of the depositor on the day of application, unless another time limit established by legislation of the Republic Belarus and/or contract, a document confirming the  fact of conclusion of the bank deposit contract containing data about its material terms, and also other data concerning servicing its deposit (data on change of interest, amount of accrued interest, on increase of the sum of deposit and so on).

Article 186. Depositors’ right to recover deposits

Deposit-takers ensure safety of deposits and timely fulfilment of their obligations toward depositors.

Deposit-takers are obliged to repay deposits in accordance with the terms and conditions of the bank deposit contracts.

Under a term bank deposit contract or conditional deposit contract, a depositor, natural person (with exception of an individual entrepreneur) is entitled to demand the repayment of the deposit before the maturity of the deposit or the occurrence of the circumstance (event) stipulated in the contract. The deposit-taker is obliged to the deposit within five days from the day of submission of the demand.

A provision of a term or conditional bank deposit contract on the waiver by the depositor of the right to demand premature repayment of the deposit is void.

If a term or conditional bank deposit is repaid to the depositor at his demand prematurely or before the occurrence of the circumstance (event) specified in the contract, interest on deposit is paid in the amount and in the manner stipulated by the bank deposit contract.

Article 187. Interest on deposit

The deposit-takers pay the depositor interest on the deposit at a rate stipulated by the bank deposit contract.

The rate of interest on term deposits and deposits in escrow may be change by agreement of the parties, unless otherwise stipulated by the bank deposit contract.

In the event of the decrease of the refinancing rate established by the National Bank, the deposit-taker has the right to unilaterally change the rate of interest on deposits paid in official monetary unit of the Republic of Belarus (Belarusian roubles) with a prior notification of depositors if it is stipulated by the bank deposit contract.

In the event of decreasing of the interest rate on deposit by the deposit-taker, the new rate is applied to the deposit that has been placed prior to the notification of the depositor of the decrease of the interest rate in the national printed mass media being official edition or in another way stipulated by the bank deposit contract, on expiration of at least one month from the date of notification.

Article 188. Procedure for posting and payment of interest on deposit

Interest on a deposit accrues from the date of receipt by the deposit-taker until the day preceding the day of its repayment to the depositor, unless otherwise stipulated by the bank deposit contract.

Interest on a deposit is paid to the depositor monthly, unless otherwise stipulated by the bank deposit contract.

When a deposit is being repaid, interest is calculated and paid in full.

Article 189. Placing monetary means on deposit account of depositor by other persons

Unless otherwise stipulated by the bank deposit contract, monetary means remitted to the depositor’s account by other persons may be entered to the deposit.

Article 190. Deposits in the name of other persons

The bank deposit contract may be concluded in the name of other person which obtains the rights of a depositor from the day of presentation to the deposit-taker of the first demand in a written form with respect to the deposit.

Prior to the presentation by a person in whose name the deposit has been placed of the first demand, the person who has concluded the bank deposit contract may use the rights of the depositor with respect to the deposit place by him in the name of another person.

The bank deposit contract on the name of a natural person who have died by the moment of conclusion of the contract or on the name of a legal person liquidated by this moment is null and void

If prior to the presentation of the first demand, the person in whose name the deposit was placed renounced the deposit, or the natural person died, was considered missing or declared dead, or the legal person was liquidated, the person that concluded the bank deposit contract may make use of the rights with respect to the deposit placed by him in the name of another person.

The rules on a contract in favour of a third person established by civil legislation apply to the bank deposit contract in the name of another person, unless it contradicts the rules of this Article and the nature of the bank deposit.

Article 191. Bank deposit of precious metals and/or precious stones

A bank deposit of precious metals and/or precious stones means precious metals and/or precious stones placed by natural and legal persons in a bank or a non-bank credit and financial organization with a view to earning income for a term or at call or till the occurrence (non-occurrence) of a circumstance (event) determined in the contract. Income on a bank deposit of precious metals and/or precious stones is paid in the form of interest and in the manner determined by the bank deposit contract of precious metals and/or precious stones.

Interest on a deposit of precious metals and/or precious stones may by paid in the form of monetary means, precious metals and/or precious stones upon an arrangement of the parties with the observance of requirements of the legislation of the Republic of Belarus.

Interest on a deposit of precious metals and/or precious stones may be paid also in another form on the terms and conditions and in the manner determined by the bank deposit contract of precious stones and/or precious stones.

The rules of this Chapter apply to the bank deposit of precious metals and/or precious stones unless otherwise stipulated by legislation of the Republic of Belarus or follows from the nature of obligations under the contract of bank deposit of precious metals and/or precious stones.

Article 192. Savings book

A bank deposit contract with a depositor, natural person (with exception of an individual entrepreneur), may be formalized by a savings book issued by the deposit-taker.

The savings book shall specify:

the name, place of location of the depositor (place of location of its permanent executive body);

series and number of the savings book;

surname, own name, patronymic (if available) of the depositor – for a nominal savings book;

type of the bank deposit contract;

the number of account for record keeping of deposit;

amount of the deposit in numbers and in words, as well as amounts of monetary means credited and debited to the account;

the currency of the deposit;

interest on the deposit;

the account balance on the moment of presenting the savings book to the deposit-taker;

the time period for the deposit repayment, for a term bank deposit;

the circumstance (event) on the occurrence (non-occurrence) of which the deposit-taker undertakes to return the deposit, for a conditional bank deposit.

Deposit data specified in the savings book shall serve as a basis for settlements between the deposit-taker and the depositor.

The deposit-taker repays the deposit and interest thereon and fulfils instructions of the depositor on remittance of monetary means from his account for record keeping of the deposit to other persons only upon presentation of the savings book.

Article 193. Types of savings book

A savings book may be either a nominal savings book or a bank savings book to bearer.

Article 194. Nominal savings book

A nominal savings book is a savings book under which the right to withdraw the deposit and interest thereon pertains only to the person named in it or his representative with corresponding powers.

The operations on the deposit are performed by the deposit-taker only upon the presentation of the nominal savings book.

If a nominal savings book is lost or is unfit for presentation, the deposit-taker, on the depositor’s application, issues a new personal savings book or pays, at the demand of the depositor, the balance on his deposit account and interests due.

Article 195. Bank savings book to bearer

A bank savings book to bearer is a savings book under which the right to withdraw the amount of the deposit and interests on the deposit pertains to the person presenting such savings book.

The bank savings book to bearer constitutes a security to bearer.

The restoration of rights under a lost savings book to bearer is carried out the court the order established by procedural legislation.

Article 196. Savings certificate and deposit certificate

A savings certificate is a security certifying the amount of the deposit placed to the deposit-taker and the rights of the depositor (natural person holding the certificate, with exception of an individual entrepreneur – certificate holder) to withdraw, at maturity, the amount of the deposit and interest thereon at the deposit-taker that has issued the certificate or at any affiliate of the deposit-taker.

A deposit certificate is a security certifying the amount of the deposit placed to the deposit-taker and the rights of the depositor (legal person/ individual entrepreneur – certificate holders) to withdraw, at maturity, the deposit and interest thereon at the deposit-taker or at any affiliate of the deposit-taker.

Savings and deposit certificates may be nominal securities or securities to bearer.

The savings certificate must contain:

the name " savings certificate";

the series and the number;

the date of the deposit;

the amount of the deposit in figures and in words in Belarusian rubles;

the rate of the interest on the deposit and the intervals for its payment;

the date of deposit repayment;

the obligation of the deposit-taker to return the amount place in the deposit and to pay the interest due;

the procedure for the return of monetary means to the depositor in the case of non-fulfilment of the obligation or premature termination of the contract established by an authorized body of the bank (it is allowed to indicate to these data referring to the source of the publication of the relevant act of the authorized body of the bank);

the liability of the deposit-taker for the non-fulfilment of the obligation;

the name and location of the deposit-taker (location of its permanent executive body);

surname, own name, patronymic (if available), identity document details of the depositor if the certificate is a nominal security;

the indication “to bearer” if the certificate is a security to bearer;

sealed signatures of authorized persons of the deposit-taker;

the tear-off coupon (slip) which is detached from the blank form at the time of certificate issuance and retained at the deposit-taker.

The deposit certificate must contain:

the name “deposit certificate”;

the series and the number;

the date of the deposit;

the amount of the deposit in figures and in words in Belarusian rubles;

the rate of the interest on the deposit and the intervals for its payment;

the date of deposit repayment;

the obligation of the deposit-taker to return the amount place in the deposit and to pay the interest due;

the name and location of the deposit-taker (location of its permanent executive body);

the name and location (location of its permanent executive body) and the number of the current bank account (for depositors, legal persons); surname, own name, patronymic (if available), identity document details and, if available, the number of the current bank account (for depositors, individual entrepreneurs) if the certificate is a nominal security;

the indication “to bearer” if the certificate is a security to bearer;

sealed signatures of authorized persons of the deposit-taker;

the tear-off coupon (slip) which is detached from the blank form at the time of certificate issuance and retained at the deposit-taker.

Certificates are issued in Belarusian rubles. The issue of certificates in foreign currency is not allowed. The certificate may not be used as a means of settlement or payment for goods (works, services), except for the services provided by a bank or a non-bank credit and financial organization.

The duration of certificate circulation and rate of interest thereon are established by the deposit-taker at the issuance of the certificate and may not be changed during the period of certificate circulation.

Rights evidenced by nominal savings and deposit certificates may be assigned in the order established for the cession of a claim.

Rights evidenced by a savings certificate may be transferred only to a natural person. Rights evidenced by a deposit certificate may be transferred only to a legal person, including a bank, and/or individual entrepreneur, with exception of the cases stipulated by legislation of the Republic of Belarus.

Transactions with savings and deposit certificates are concluded only in Belarusian rubles.

In case of an early presentation of a savings certificate or deposit certificate for payment, the deposit-taker pays the amount and interest stipulated for an at-call deposit, unless a different rate of interest is stipulated by the terms and conditions of the certificate. The condition of a savings certificate limiting the right of its holder to receive the amount of the deposit and the interest thereon at first demand is void.

If the maturity date specified in the certificate is missed, such certificate is deemed, starting from the maturity date specified therein, to be a demand document under which the deposit-taker is obliged to pay the amount stated therein.

Procedures for and terms of issue and circulation of savings and deposit certificates not regulated by this Article are determined by the National Bank in agreement with authorized central bodies of state administration carrying out the state regulation of the securities market.

CHAPTER 22
BANK ACCOUNT

Article 197. Current (settlement) bank account contract

Under a current (settlement) bank account contract, one party (bank or non-bank credit and financial organization) undertakes to open a current (settlement) account for the other party (account holder) to keep its monetary means and credit the account with monetary means received in favor of the account holder, and also undertakes to carry out the account holder's instructions for transfer and payment of corresponding monetary means from the account, whilst the account holder empowers the bank or non-bank credit and financial organization to use the temporarily idle resources available on his account with payment of interest determined by legislation of the Republic of Belarus or the contract and pay commission to the bank or non-bank credit and financial organization for services rendered.

Article 198. Account holders under current (settlement) bank account contract

Account holders under a current (settlement) bank account contract may be natural and legal persons.

Article 199. Order of the conclusion of current (settlement) bank account contract

A bank or non-bank credit and financial organization are obliged to conclude a current (settlement) bank account contract with any natural or legal person requesting that a current (settlement) bank account be opened, subject to the conditions determined by the bank for opening such accounts.

After the conclusion of a current (settlement) bank account contract, the bank or non-bank credit and financial organization open, not later than on the following working day, a current (settlement) bank account for the account holder and assign an number to the account allowing to identify such account.

A bank, non-bank credit and financial organization is entitled to refuse a natural person or a legal person to open the current (settlement) bank account in the instances provided in accordance with the legislation on the prevention of legalization of profits received from crime, financing of terrorist activity and financing proliferation of arms of mass destruction.

Article 200. Procedure for disposal of monetary means on current (settlement) bank account

A current (settlement) bank account holder may dispose of monetary means on his account either personally or through persons authorized by him.

The rights of the current (settlement) bank account holder and his duly authorized persons are confirmed by presenting to the bank or non-bank credit and financial organization documents determined by the legislation of the Republic of Belarus.

To carry out by a bank, non-bank credit and financial institution of settlements with monetary means being on the current (settlement) bank account of a legal person or an individual entrepreneur, a card with specimens of signatures and of the impression of the seal.  The card with specimens of signatures and of the impression of the seal include signatures of officials of the legal person, individual entrepreneur, which have the right to sign documents for making settlements, and also the impression of the seal of the legal person, impression of the seal of the individual entrepreneur (if available). The authenticity of the signatures of officials of the legal person, individual entrepreneur, included in the card with specimens of signatures and of the impression of the seal is to be witnessed in the order established by the legislation of the Republic of Belarus.

When the information to be included in the card with specimens of signatures and of the impression of the seal, the account holder is obliged to notify immediately the bank, non-bank credit and financial organization and, within one-month period from the day of change of the mentioned information shall formalize a new card with specimens of signatures and of the impression of the seal in the order established by the legislation of the Republic of Belarus.  In case if the card with specimens of signatures and of the impression of the seal, which needs to be changed, is not formalized within the indicated, the bank or non-bank credit and financial institution shall refuse to execute the documents of the account holder for conducting payments till the formalization of a new card with specimens of signatures and of the impression of the seal.

When the right to sign documents for conducting settlements is granted temporarily, and also when one of the persons that have the right to sign documents for conducting settlements has temporarily replaced, for a period of not exceeding two months, a new card with specimens of signatures and of the impression of the seal needs not be formalized.  In this case, the account holder submits to the bank or non-bank credit and financial organization a temporary card with specimens of signatures of persons that temporarily have the right to sign documents for conducting settlements, the authenticity which is certified by the account holder.

Disposal of monetary means via systems of distance bank servicing, including via use of electronic documents, stipulated by the current (settlement) bank account contract, is carried out in the order established by the legislation of the Republic of Belarus.

The bank or non-bank credit and financial organization is not entitled, unless otherwise stipulated by the President of the Republic of Belarus and this Code, to determine and control the intended use of monetary means by the account holder, as well as to establish other restrictions on the holder's rights to dispose of his monetary means not stipulated for by legislation of the Republic of Belarus or current (settlement) bank account contract.

Disposal of monetary means with the use of electronic documents stipulated by the current (settlement) bank account contract is carried out in the order established by the legislation of the Republic of Belarus.

Article 201. Current (settlement) bank account operations

A bank and non-bank credit and financial organization perform the following current (settlement) bank account operations:

crediting the bank account with the monetary means received in favor of the holder thereof;

remitting monetary means from the bank account to other persons, including the bank and/or non-bank credit and financial organization;

pay cash monetary means from the account;

other operations stipulated by legislation of the Republic of Belarus or current (settlement) account contract.

Article 202. Time limit for performing current (settlement) bank account operations

A bank or non-bank credit and financial organization are obliged to perform operations within one banking day, unless otherwise stipulated by legislation of the Republic of Belarus or the current (settlement) bank account contract.

Article 203. Remuneration (fee) for services of bank or non-bank credit and financial organization

A bank account holder pay for services of a bank or non-bank credit and financial organization on performing operations with monetary means on the holder's account on the terms and conditions determined by the current (settlement) bank account contract.

Remuneration (fee) for rendered services are charged by the bank non-bank or credit and financial organization on monetary means of the account holder monthly, unless otherwise stipulated by the current (settlement) bank account contract.

Remuneration (fee) is not charged:

for services to state bodies, budget-financed organizations, and other legal persons and individual entrepreneurs on settlement (current) bank accounts opened by them for placing budgetary means;

for performing payment instructions of a bank holder for remitting a tax, due (duty), penalty fee and other obligatory payments to the national and local budgets, state special budgetary and non-budgetary funds;

for the execution of resolutions of a tax body, customs body, body of the Fund of Social Protection of Population of the Ministry of Labour and Social Protection of the Republic of Belarus on levying a tax, due (duty), penalty fee and other obligatory payments to the national and local budgets, state special budgetary and non-budgetary funds;

for acceptance of monetary means from natural person when paying a tax, due (duty) and other obligatory payments to the republican or local budgets, state non-budget fund of social protection of the population of the Republic of Belarus;

for performing inter-bank settlements using budgetary means;

in other cases stipulated by the legislative acts of the Republic of Belarus.

Article 204. Interest for using monetary means being on current (settlement) bank account

For using monetary means on a current (settlement) bank account, the bank or non-bank credit and financial organization pay the account holder interest at the rate and in the order determined by the current (settlement) bank account contract, unless otherwise stipulated by legislation of the Republic of Belarus.

Unless otherwise stipulated in the current (settlement) bank account contract, interest paid by a bank or non-bank credit and financial organization for using monetary means on the current (settlement) bank account are credited to the account upon expiration of each month.

A bank or non-bank credit and financial organization are entitled, after prior notification the account holder, to change unilaterally the amount of interest paid by them for using monetary means on the current (settlement) bank account if it is stipulated by the current (settlement) bank account contract.

Article 205. Priority of debiting monetary means from current (settlement) bank account

Where monetary means available on a current (settlement) bank account are sufficient for satisfying all monetary claims presented to the account holder, these means are debited from the account in order of precedence.

Where monetary means available on a current (settlement) bank account are insufficient for satisfying all monetary claims presented to the account holder, payment instructions received by the bank are settled in the order of priority indicated by the account holder, recoverer, subject to requirements provided by the legislative acts of the Republic of Belarus.

Article 206. Termination of obligations under current (settlement) bank account contract

Obligations under a current (settlement) bank account contract are subject to termination at the demand of the account holder within a period established by agreement of the parties.

A bank or non-bank credit and financial organization is entitled to terminate obligations under a current (settlement) bank account contract, having given the account holder one-month warning, unless otherwise stipulated by the current (settlement) bank account contract;

in the absence of monetary means on the current (settlement) bank account for three months from the date of the last remittance of monetary means from it;

in the absence for one year of operations on the current (settlement) bank account and monetary means on it if, in the absence for one year of operations, the balance on the bank account is less than the minimum amount established by the current (settlement) bank account contract;

when the account holder does not fulfil the conditions of the current (settlement) bank account contract;

when the account holder does not present documents (information) necessary to identify participants in the financial transactions in accordance with legislative acts of the Republic of Belarus on prevention of legalization of profits received from crime, financing of terrorist activity and financing proliferation of arms of mass destruction;

in other cases stipulated for by legislation of the Republic of Belarus and/or the contract.

The period of imposing arrest on monetary means on the current (settlement) bank account, of suspension of operations on the current (settlement) bank account is not included within the time period specified in part two of this Article.

Upon the termination of obligations under the current (settlement) bank account, as well as in other cases stipulated by this contract, the balance on the account shall be handed out at the request of its holder not later than on the next banking day after presentation of such a request, or remitted to another bank account indicated by it in accordance with the payment instruction of the account holder, unless otherwise provided by the legislation of the Republic of Belarus.

Article 207. Indisputable debiting monetary means from payers’ accounts

When levying execution on monetary means on accounts of the payer in a bank or non-bank credit and financial organization, the debiting of these means from the accounts is performed indisputably by payment order formalized on the basis of execution inscriptions of notaries or other execution documents, decision (executive order) of a state authorized body or authorized organization (official) in cases provided by legislative acts of the Republic of Belarus.

Banks and non-bank credit and financial organizations do not consider the payers’ objections concerning indisputable debiting of monetary means from their accounts.

Article 2071. Special account contract, sub-account contract

Under a special account contract, subaccount contract, one party (bank or non-bank credit and financial organization) undertakes to open for the other party (the account holder) a current (settlement) bank account with a special mode of operation, set in the special account contract, sub-account contract on the basis of the legislative act of the Republic of Belarus, according to which the special account, sub-account is opened.

The relations under a special account contract, sub-account contract, are covered by the rules about the contract of the current (settlement) bank account, unless otherwise provided by the rules of this Chapter or the act of legislation of the Republic of Belarus in accordance with which the special account, sub-account is opened.

Article 208. Temporary account contract

Under a temporary account contract, a bank or non-bank credit and financial organization undertakes to open a bank account to a founder, authorized by other founders, of a commercial organization being created for their setting up its authorized fund; to a created commercial organization for an increase of the amount of its authorized fund; and in other cases stipulated by the legislation of the Republic of Belarus.

Article 209. Correspondent account contract

Under a correspondent account contract, a correspondent bank or non-bank credit and financial organization undertakes to open a correspondent account for a bank or a non-bank credit and financial organization-(account holder) for safekeeping its monetary means and crediting the account with monetary means received in favour of the account holder, and also undertakes to carry out instructions (orders) of the account holder concerning remittance and payment of appropriate monetary means from the account in the order stipulated by legislation of the Republic of Belarus.

A correspondent account contract is concluded with a written consent of executives of a bank, the head or a deputy head of a non-bank credit and financial organization.

A bank or non-bank credit and financial organization may not conclude a correspondent account contract with non-resident banks that do not have permanently functioning governing bodies in the territory of the states in which they are registered and do not make part of a bank group, bank holding.

Article 210. Charity account contract

Under a charity account contract, a bank or non-bank credit and financial organization undertakes to open a bank account for a natural or legal person for collecting, safekeeping, and using monetary means received as aid or donation for charity purposes.

Article 211. Procedure for opening certain bank accounts

A bank or non-bank credit and financial organization is entitled to open account for record keeping of a deposit, current (settlement) account to a natural person without direct attendance of the person that opens the account or his representative when using systems of distance bank servicing in the instance when the bank or non-bank credit and financial organization performed their identification in accordance with legislative acts on the prevention of legalization of profits received from crime, financing of terrorist activity and financing proliferation of arms of mass destruction.

Article 212. [Excluded]

CHAPTER 23
TRUST MANAGEMENT OF MONETARY MEANS

Article 213. Contract of trust management of monetary means

Under a contract of trust management of monetary means, the settlor transfers to a bank or non-bank credit and financial organization (trustee) its monetary means to a trust for a definite period of time, and the trustee undertakes to manage, for a fee, the entrusted monetary means in the interests of the settlor or a person designated by the latter (the beneficiary).

Article 214. Legal regulation of trust management of monetary means

Relations arising out of or in connection with trust management of monetary means and not regulated by this Code or other acts of banking legislation are regulated by civil legislation on trust management of property.

Article 215. Form of contract of trust management of monetary means

A contract of trust management of monetary means must be made in a written form. Non-observance of the written form of the contract of trust management of monetary means entails its invalidity.

Article 216. Material terms and conditions of contract of trust management of monetary means

A contract of trust management of monetary means must contain material terms and conditions determined by civil legislation for the contract of trust management of property.

Article 217. Subject matter of contract of trust management of monetary means

Any monetary means belonging to the settler on the right of ownership may be subject matter of a contract of trust management of monetary means.

In cases stipulated for by legislation of the Republic of Belarus, settlors of monetary means may be persons other than owners thereof.

Monetary means which are in economic management or operative administration may not be transferred to trust management.

Article 218. Using monetary means transferred to trust management

Monetary means transferred to a trust management may be used by trustees in accordance with the contract of trust management of monetary means for:

placement on deposit to obtain income;

acquisition of securities (with the exception of the cases when the shares of open joint-stock companies belong to the Republic of Belarus or its administrative-territorial units) and for management thereof;

granting interbank credits;

performance of operations with securities, derivative securities, foreign currency valuables and precious metals.

The trustee has no right to use monetary means transferred by the settlor in the interests not related to the trust management of the means.

Article 219. Procedure for transferring monetary means into trust management

Monetary means are transferred, in the order established by the National Bank, into trust management:

by settlors-legal persons, through remittance from the current (settlement) account of the settlor to the fiduciary (trust) account;

settlors-natural persons, through remittance from bank accounts or through payments in cash to the fiduciary (trust) account.

Article 220. Forms of trust management of monetary means

The forms of trust management of monetary means are:

full trust management.;

trust management by agreement;

trust management by order.

Article 221. Full trust management of monetary means

Under full trust management of monetary means, the trustee independently performs actions with the settlor’s monetary means within instructions on management with obligatory notification to the settler about every action taken, unless otherwise stipulated by the contract.

Article 222. Trust management of monetary means by agreement

Under trust management of monetary means by agreement, the trustee performs actions the settlor’s monetary means subject to obligatory prior agreement of each action with the settlor.

Article 223. Trust management of monetary means by order

Under trust management of monetary means by order, the trustee performs actions with the settlor’s monetary means only according to the settlor’s order.

Article 224. Protection of trustee's rights

The trustee's rights to monetary means transferred to a trust management are protected in the same way as the settlor’s rights to said monetary means, including protection against wrongful acts of the settlor himself.

Article 225. Pooling of monetary means of several settlors by trustee

The trustee has the right to pool monetary means of several settlors in order with the view of using them in most effective way, subject to compliance with the terms and conditions of each contract of trust management of monetary means.

Article 226. Accounting by trustee of monetary means and securities in trust management

The trustee is obliged to maintain separate accounting of his own monetary means and securities, monetary means and securities of the settlor transferred to a trust management and received (acquired) under such management by the trustor, as well as separate accounting of monetary means and securities of different settlors.

Recovery on obligations related to trust management of monetary means transferred by one settlor may not be performed out of monetary means of another settlor being in trust management of the same trustee by.

Article 227. Transfer of management powers

Unless the obligation of the trustee to fulfil his obligations personally follows from the contract of trust management of monetary means, the trustee is entitled to engage for their fulfilment only another bank or non-bank credit and financial organization.

Article 228. Fiduciary (trust) account contract

A fiduciary (trust) account for the settlor is opened on the basis of a fiduciary (trust) account contract. At that, the trustee has the right to open the fiduciary (trust) account in his own establishment.

A fiduciary (trust) account contract is concluded only subject to the conclusion of a contract of trust management of monetary means.

Procedures for conclusion, execution, and termination of a fiduciary (trust) account contract are established by this Code and normative legal acts of the National Bank.

Article 229. Right of ownership of settlor of monetary means in fiduciary (trust) account

Placement of monetary means in a fiduciary (trust) account does not entail termination of the settlor’s right of ownership of such means.

The settlor’s right of ownership shall also apply to the monetary means and securities received (acquired) under the trust management.

Article 230. Closing fiduciary (trust) account

A fiduciary (trust) account is to be closed in case of:

termination of obligations under a contract of trust management of monetary means;

absence of monetary means in the account during one year;

in other cases stipulated for by legislation of the Republic of Belarus or the contract.

SECTION VII
INTERMEDIARY BANKING OPERATIONS

CHAPTER 24
SETTLEMENTS

Article 231. Settlements

Settlements may be effected in cashless and cash form.

Settlements in a cashless form mean settlements between natural and legal persons or with their participation effected via a bank or non-bank credit and financial organization, its affiliate in a cashless order.

Settlements in a cashless form effected as bank remittance, monetary remittance, letter of credit, and collection.

The order of effecting settlements with cash monetary means is regulated by legislation of the Republic of Belarus.

The provisions of this Chapter cover all settlements, including settlements in a cashless form effected by non-bank credit and financial organizations.

Article 232. Effecting settlements by way of bank remittance based on payment instructions

Settlements in a cashless form by way of a bank remittance are effected on the basis of payment instructions by means of:

presentation of settlement documents (remittance order, payment request, payment order);

using payment instruments (bank payment card and other instruments) and means of payment while carrying out respective operations;

presentation and using other documents and instruments in the cases provided by the National Bank.

Settlements in a cashless form by way of a bank remittance may be effected also on the basis of a contract between a bank and a customer containing data necessary for effectuation of a bank remittance. A contract may stipulate a possibility of transmission by the customer to the bank of payment instructions necessary to carry out a bank transfer via systems of distance bank servicing, subject to ensuring the reliability and safety of information transmission.

Requirements toward the form and content of payment instructions and toward the procedure for performing operations while effecting settlements in a cashless form are established by the National Bank.

The ground for a banks’ effecting settlements in a cashless form is a contract (bank deposit contract, bank current (settlement) account contract, correspondent account contract or other contract) concluded between the bank and a customer unless the duty of accepting for execution (acceptance) by the bank of payment instructions is established by normative legal acts of the National Bank.

Obligations arising out of a contract concluded by a bank and a customer are independent in relation to obligations arising out of a contract concluded between the customer and his counterparty (hereinafter – underlying contract) for the execution of which the bank remittance is effected. Banks are not bound by terms and conditions of the underlying contract and by a volume of obligations of parties thereof, including when payment instructions contain a reference to the underlying contract. Banks have no right to control the fulfilment by the parties of their obligations under the underlying contract unless otherwise stipulated by the President of the Republic of Belarus, as well as to interfere in the relations of the parties of the underlying contract.

A bank is entitled to deny a customer to effect settlements in a cashless form in the case:

of absence of a contract concluded between the bank and the customer, except for the case when the duty of the bank to accept for execution (acceptance) of payment instructions is established by normative legal acts of the National Bank;

if the contract concluded does not stipulate the effectuation of settlements in that form;

of absence of a sufficient sum of means in the payment currency on the account of the customer unless there is a credit contract.

in other cases stipulated by the legislative acts of the Republic of Belarus.

A bank denies to effect settlements in a cashless form in the case:

when arrest is imposed on monetary funds in the customer’s account and/or operations on the account are suspended according to a resolution of an authorized state body (official) (in that case settlements in a cashless form may be effected after the execution of the relevant resolutions of the authorized state body (official)). Legislative acts of the Republic of Belarus may establish the cases and the order of performing settlements in a cashless form when the arrest is imposed on monetary funds in the customer's account and/or operations on the account are suspended;

when execution (acceptance) of payment instructions constitute a violation of legislation of the Republic of Belarus on the part of the bank;

when the form and content of payment instructions do not comply with requirements established by normative legal acts of the National Bank or the bank has founded reasons to believe that payment instructions are not true;

in other cases stipulated by the legislative acts of the Republic of Belarus.

After taking decision on denial of the execution of settlements in a cashless form, the bank is obliged to notify the customer about that not later the banking day following the day of receipt of banking instructions unless otherwise stipulated by legislation of the Republic of Belarus or contract.

Article 233. Form of payment instructions

Payment instructions of a customer may be issued in writing, including by means of using systems of distance bank servicing.

Payment instruction of a customer – legal person, issued in a written form, shall carry signatures (signature) of persons authorized to dispose of monetary means on the account and the impression of the account holder's seal. Payment instruction of a customer- legal person that contains such signatures and the impression of the seal and that comply by other features with requirements of legislation of the Republic of Belarus is deemed to be authentic.

Payment instruction of a customer – natural person, issued in a written form, must carry the signature of that person or a person authorized by the former to dispose of monetary means on the account. Payment instruction of a customer- natural person which contains such signature and which complies by other features with requirements of the legislation of the Republic of Belarus is deemed to be authentic. Payment instruction of a customer – individual entrepreneur may also carry the impression of his seal.

The order of usage, storage of payment instructions issued by means of systems of distance bank servicing, including in the form of an electronic document, and also the order of formation and storage of payment instructions on paper are established by the National Bank.

Article 234. Imposition of duty on payment instructions execution on another bank

In the case when, due to specifics of settlements in a cashless form or to other reasons, a bank approached by a customer can not effect payment in full, this bank may redirect partial execution of the customer’s instructions to another bank (correspondent bank). With the consent of the servicing bank, the customer is entitled either to determine a correspondent bank for execution of payment instructions or give the right to choose such bank to the servicing bank.

The bank is liable for losses caused to the customer due to the non-execution of his instruction on choice of a correspondent bank.

Article 235. Customer’s right to change and cancel payment instructions

Customers has the right to change or cancel payment instructions issued to a bank before the bank performs actual actions for their execution. Actual actions for the execution of payment instructions mean:

performance of records on respective accounts of bookkeeping;

performing other actions by the bank determined by legislation of the Republic of Belarus.

After performing an actual action, the bank is entitled not to take any actions on changing or cancelling payment instructions.

Article 236. Time limits for payment instructions execution

Payment instructions are to be executed by the bank not later the banking day following the day of the delivery thereof to the bank, unless otherwise stipulated by this Code, other legislation of the Republic of Belarus or contract. Banks are obliged to accept customers’ payment instructions the time of execution of which will come at a future date, as well as payment instructions the execution of which is subject to the occurrence of some circumstances (events) in the future if the possibility of performing such operations is stipulated by the rules established by banks.

Article 237. Bank liability for non-execution or undue execution of payment instructions

undue execution by a remitting bank of payment instructions of a customer (recoverer) mean:

untimely debiting monetary means from the account of the payer;

debiting monetary means in an amount not corresponding to the amount indicated in payment instructions of the customer (recoverer);

issuing, for the execution of payment instructions of the customer (recoverer), correspondent bank of a payment order not corresponding the payment instructions of the customer (recoverer), correspondent bank which has entailed the remittance (crediting) of monetary amounts in favor of an undue beneficiary, correspondent bank;

other cases of execution of payment instructions in the order not corresponding legislation of the Republic of Belarus or contract.

undue execution by a receiving bank of payment instructions of the correspondent bank mean:

untimely crediting monetary means to the beneficiary’s account;

crediting monetary means to the beneficiary’s account in the amount not corresponding to the payments instructions of the correspondent bank;

crediting monetary means in favor of an undue beneficiary;

other cases of execution of payment instructions in the order not corresponding legislation of the Republic of Belarus or contract.

In the case of undue execution of payment instructions, the bank is obliged to reimburse the customer (recoverer), correspondent bank:

monetary means debited groundlessly from their account;

monetary means not credited to their account;

monetary means remitted (credited) in favour of an incorrect beneficiary, correspondent bank.

In the case of non-execution or undue execution by a bank of payment instructions, the bank is obliged to indemnify the customer (recoverer), correspondent bank for real loss, including penalty fee (fine, penalty interest) recovered by counterparties under the underlying contract, sanctions imposed by authorized state bodies, as well as to pay interest for using borrowed monetary means in the order established by civil legislation.

In the case of non-execution or undue execution by a bank of payment instructions, a customer (recoverer) is also entitled to claim indemnification for lost profit if it is stipulated by a contract between the bank and the customer.

Article 238. Cases of exempting bank from liability for non-execution or undue execution of payment instructions

Banks are not liable for non-execution or undue execution of accepted payment instructions of customers in cases of:

indication by the customer of incorrect details of payment instructions;

loss of payment instructions by communications organizations or distortion by them of electronic messages;

break-downs or crash of technical systems used by the bank occurred without fault of the bank;

in other cases provided by parts two and three of Article 242, part one of Article 146 and part two of Article 247 of this Code and other legislative acts of the Republic of Belarus.

Article 239. Remittance order

Remittance order is a payment instruction whereby one bank (remitting bank) remits, by order of the customer (payer) for a fee, monetary means to another bank (receiving bank) in favour of a person indicated in the order (beneficiary).

Where the payer and the beneficiary recipient hold their accounts in the same bank or the beneficiary has no account in the bank, and it is paid in cash monetary means by the remitting bank, the remitting bank and the receiving bank constitute one and the same person.

In effecting settlements by remittance orders, the beneficiary may not demand the remitting bank to effect payment.

Article 240. Execution of remittance order

Execution of a remittance order by the remitting bank means issuing a remittance order to the receiving bank concurrently with the provision of monetary means necessary for the execution of this remittance order to the latter.

Execution of a remittance order by the receiving bank means:

crediting monetary means to the beneficiary's account. In that case, after the execution of the remittance order, the receiving bank is obliged to give the beneficiary documents confirming the crediting of monetary means to his account;

paying out cash monetary means to the beneficiary or using monetary means in accordance with his instructions (when remitting (crediting) monetary means in favour of an beneficiary that has no account in the bank).

Article 241. Effecting remittance of monetary means by means of remittance order

Remittance of monetary means by a remittance order ends upon the acceptance of the remittance order by the receiving bank.

Acceptance of the payment order by the receiving bank is deemed to be the fulfilment by the payer of his obligation on remittance of monetary means to the beneficiary.

From the moment of acceptance by the receiving bank of the remittance order until the monetary means are transferred to the beneficiary the receiving bank is considered the debtor of the latter.

Execution of the remittance order is deemed to be due even if the amount of the payment order accepted by the receiving bank is less than the sum of the remittance order of the payer as a result of collecting by the bank of fees for rendered services.

Article 242. Conditions of acceptance of payer's remittance order by remitting bank

When accepting a remittance order, the remitting bank shall verify, within the functions of exercising control imposed on it, the form of the remittance order for compliance with requirements of the legislation of the Republic of Belarus and, in the cases provided by the President of the Republic of Belarus, also verify accompanying documents.

If the remittance order contains insufficient data for execution of this remittance order, the remitting bank returns it to the payer without execution.

The remitting bank accepts the remittance order of the payer for execution only when there are monetary means available on the payer's account, unless the contract between the remitting bank and the payer stipulates a possibility of crediting by the remitting bank the payer’s account (overdraft) or granting him credit in another form.

Article 243. Acceptance of remittance order for execution by remitting bank

A remittance order is deemed to be accepted by the remitting bank in the case of:

sending a notification by the remitting bank to the payer about the acceptance of his remittance order;

issuing by the remitting bank of a remittance order for execution of the received remittance order;

receipt by the remitting bank of the remittance order, if the payer and the remitting bank have agreed that the remitting bank will execute the payer's remittance orders upon receipt thereof;

debiting by the remitting bank of the payer's accounts to effect the payment under the remittance order;

crediting by the remitting bank of the correspondent account of the receiving bank for the purpose of executing the remittance order;

using the monetary means received by the remitting bank in accordance with instructions of the remittance order;

a failure to send to the payer a notification about the refusal of acceptance of his remittance order.

Article 244. Remitting bank’s refusal to accept remittance order

The remitting bank is entitled to refuse the acceptance of a payer's remittance order in the case:

of absence of a sufficient amount of monetary means on the payer's account, if the execution of the payment order must be carried out through debiting monetary means available on the payer's account;

if the form of the remittance order does not comply with the requirements of legislation of the Republic of Belarus.

Notification of refusal to accept of the remittance order must be sent not later than on the banking day following the day of expiry of the time limit for the remittance order execution.

Article 245. Acceptance of remittance order for execution by receiving bank

A remittance order is deemed to be accepted by the receiving bank in the case of:

sending of a notification by the receiving bank to the remitting bank about the acceptance of the remittance order;

receipt by the receiving bank of the remittance order, if the remitting bank and the receiving bank have agreed that the receiving bank will execute the remitting bank’s remittance orders upon receipt thereof;

debiting by the receiving bank of the correspondent account of the remitting bank to effect payment under the remittance order;

crediting by the receiving bank of the account of the beneficiary to execute the remittance order or otherwise make monetary means available to the beneficiary;

using monetary means by the receiving bank to repay the beneficiary’s debt to the bank or using them in accordance with an execution document;

sending a notification by the receiving bank to the payee about its right to dispose of the received monetary means;

using the received monetary means by the receiving bank in accordance with instructions of the remittance order;

a failure to send to the remitting bank a notification about the refusal of acceptance of his remittance order.

Article 246. Receiving bank’s refusal to accept remittance order

The receiving bank may refuse to accept the remitting bank's remittance order in the case:

of absence of a sufficient amount of monetary means on the corresponding account of the remitting bank if the remittance order must be executed by debiting monetary means available on the remitting bank’s account;

of absence of reimbursement for the sum of the remittance order on the part of the remitting bank, coverable otherwise;

if the form of the remittance order does not comply with the requirements of legislation of the Republic of Belarus.

If the legislation of the Republic of Belarus or a contract between the receiving bank and the remitting bank provide for other cases.

Notification of refusal to accept of the remittance order must be sent not later than on the banking day following the day of expiry of the time limit for the remittance order execution.

Article 247. Procedure for execution of remittance order by receiving bank

Upon acceptance of a remittance order, the receiving bank is obliged to transfer monetary means at the disposal of the beneficiary or otherwise use the remitted means in accordance with the remittance order.

Where data contained in the remittance order is insufficient for due execution of this order or there are discrepancies in the remittance order received, the receiving bank is obliged to request further information from the remitting bank not later than on the banking day following the day of receipt of the remittance order. If there is no response from the remitting bank or payer within three days, unless another time limit established by the contract, the receiving bank is obliged to return received monetary means to the remitting bank.

Article 248. Time limit for execution of remittance order by remitting bank and receiving bank

The remitting bank and the receiving are obliged to execute the remittance order, in case of its acceptance, on the banking day when this order is received. Where there is no sufficient time for executing the remittance order before the banking day is over, it may be executed on the following banking day. The remittance order may specify another time limit for the execution thereof.

In the case of absence of a sufficient sum of monetary means on the account, and if the execution of the remittance order must be carried out by debiting monetary means available on the account, the remittance order may, provided that there is an appropriate contract, be executed upon occurrence of monetary means on the account within the time limits established by part one of this Article.

Article 249. Remittance order modification and revocation

The remittance order may be modified or revoked by the payer or the remitting bank provided that the notification about modification or revocation is received prior to its actual execution by the remitting bank or the receiving bank.

Where the notification about modification or revocation of a remittance order is received prior to its actual execution, the remitting bank or the receiving bank executes the payment order having regard to its modification.

Where the notification about modification or revocation of a remittance order is received prior to its actual execution, the remitting bank and the receiving bank have no right to effect payment under this remittance order. In that case the remitting bank and the receiving bank are obliged to return received monetary means to the payer and the remitting bank respectively.

The payer and the remitting bank, as well as the remitting bank and the receiving bank, may agree upon that a remittance order being transmitted to the remitting bank or the receiving bank may not be modified and/or revoked (irrevocable remittance order).

Verification of authenticity of a notification about remittance order modification or revocation is carried out in the order established by the banking legislation for verification of authenticity of a remittance order.

Death of a natural person, termination of activities of an individual entrepreneur, liquidation of a legal person (payer), or liquidation of the remitting bank does not constitute grounds for revocation of a remittance order.

Article 250. Debiting monetary means credited to account due to technical error

Where monetary means are credited to the account of undue beneficiary as a result of a technical error, the receiving bank is entitled to debit credited monetary means from the account and return them to the remitting bank prior to carrying out other expenditure operations on this account.

The technical error is understood to be an error committed by a bank when carrying out an operation concerning the bank transfer by technical means, which entailed undue execution of payment instructions of the client, remitting bank.

Procedure and time limit for return of monetary means credited to the account of an undue beneficiary as a result of a technical error are established by normative legal acts of the National Bank.

Article 251. Intermediary bank (settlement centre)

If a remittance order is executed via a bank not being either a remitting bank or a receiving bank (intermediary bank, settlement centre), rules established by this Code for the receiving bank are applied to the intermediary bank (settlement centre) that has received the remittance order, and rules established by this Code for the remitting bank are applied to the intermediary bank (settlement centre) that has sent the remittance order.

Article 252. Payment demand

The payment demand is a payment instruction containing the demand of a beneficiary (recoverer) to the payer to pay a specified sum of monetary means through a bank.

Rules for effecting settlements in a cashless form by a payment demand are established by normative legal acts of the National Bank.

Article 253. Payment order

The payment order is a payment instruction formalized by the bank when carrying out a transfer of monetary means in Belarusian rubles and foreign currency on its own name and for its own account, on its own name but on behalf of and for the account of a customer, or on behalf of and for the account of a customer. Cases when a bank transfer is formalized by means of a payment order are established by the National Bank and by the contract between the bank and the customer.

Article 254. Letter of credit

A letter of credit is an undertaking by virtue of which a bank acting under the instruction of a customer-applicant (issuing bank) is to make payment to a payee (beneficiary) or is to accept and pay a bill of exchange drawn by the beneficiary or to authorize another bank (executing bank) to effect such payment, or to accept and pay the bill of exchange drawn by the beneficiary, provided that all terms and conditions of the letter of credit are complied with. A letter of credit may be executed by payment against presentation, payment by instalment, accepting, or discounting a bill of exchange.

For advising a letter of credit to a beneficiary, the issuing bank (executing bank) may engage another bank (advising bank).

A letter of credit is an independent undertaking in relation to obligations arising out of a contract of sale or another contract that stipulates this form of settlements. Banks are not bound by terms and conditions of such contracts.

Article 255. Types of letter of credit

A letter of credit may be irrevocable, confirmed, transferable, standby.

Article 256. [Excluded]

Article 257. Irrevocable letter of credit.  Confirmed letter of credit

The irrevocable letter of credit is understood to be a letter of credit that may be amended or cancelled without the beneficiary’s consent.

A letter of credit is irrevocable, unless otherwise expressly stated in the text thereof.

The issuing bank must reimburse the executing bank which, upon presentation of documents which appear on their face to be in compliance with the terms and conditions of the letter of credit, made a payment, undertook to make a deferred payment, accepted and paid or discounted a bill of exchange, as well as to accept such documents.

At the request of the issuing bank, the executing bank involved in a documentary credit operation may confirm an irrevocable letter of credit (confirmed letter of credit). Such confirmation means an undertaking of the executing bank in addition to that of the issuing bank to make payment under the letter of credit, accept and pay a bill of exchange or to make other actions in accordance with the terms and conditions of the letter of credit. The bank that confirmed the letter of credit is the confirming bank.

An irrevocable letter of credit confirmed by the executing bank may not be amended or cancelled without the consent of the executing bank.

If drawings by instalments within given periods are stipulated by the letter of credit and any instalment is not drawn within the period allowed for that instalment, the letter of credit ceases to be effective both for that and any subsequent instalments, unless otherwise stipulated by the letter of credit.

Article 258. Transferable letter of credit

The transferable letter of credit is understood to be a letter of credit under which the issuing bank (executing bank) may, at the request of the beneficiary, to give the consent to another person (another beneficiary) to execute the letter of credit, in whole or in part, provided that it is allowed by the obligation subject to presentation by that beneficiary of documents specified in the letter of credit.

A letter of credit may be transferred if it is designated by the issuing bank as transferable. A transferable letter of credit may be transferred only once, unless otherwise stipulated therein. Prohibition to transfer a letter of credit does not mean a prohibition to assign the right to claim the amount of monetary means due under it.

Article 259. Standby letter of credit

The standby letter of credit is understood to be a letter of credit under which a bank issues an independent undertaking to pay to the beneficiary a certain amount of monetary means to the beneficiary upon his demand (application) or upon demand accompanied by documents in conformity with the terms and conditions of the letter of credit indicating that payment is due because of a default of the applicant in the performance of an obligation, or because of occurrence of a circumstance (event).

Provisions of this Code relative to the bank guarantee apply to a stand-by letter of credit unless otherwise stipulated by the terms and conditions of the standby letter of credit.

Article 260. Relations between applicant and issuing bank

Instructions of the applicant to the issuing bank on the basis of which a letter of credit is opened may not provide for any obligations for the beneficiary or other banks involved in the execution of the letter of credit and may not grant them any rights.

The applicant is obliged, concurrently with giving instructions to the issuing bank, make available monetary means necessary for the execution of a letter of credit, unless otherwise stipulated by agreement between the applicant and the issuing bank. The fulfilment by the applicant of this duty does not affect relations between the issuing bank and the beneficiary (other banks involved in the execution of the letter of credit).

In the case when in the course of the examination of documents under a letter of credit, discrepancies with its terms and conditions have been detected, the executing is entitled to refuse the documents to which effect is must give notice within five banking days following the day of receipt of the documents by telecommunications to the bank from which it received the documents or to the beneficiary if the documents were received directly from the latter. In the case when discrepancies of documents with the terms and conditions of the letter of credit have been detected, the issuing bank is entitled to approach the applicant requesting whether the latter agrees to pay such documents or refuses their payment.

Article 261. Relations between issuing bank (confirming bank) and beneficiary

The issuing bank (confirming bank) is obliged to effect payment to the beneficiary only upon presentation of documents that appear on their face to be in compliance with the terms and conditions of the letter of credit.

The issuing bank (confirming bank) is obliged to examine the documents and determine whether to accept or refuse them within five banking days following the day of receipt of the documents. In case of refusal to accept the documents, a notice stating their discrepancies with the terms and conditions of the letter of credit must be immediately sent to the party from which the documents were received.

Procedures for examining whether document are in compliance with the terms and conditions of a letter of credit are established by normative legal acts of the National Bank.

Article 262. Legal status of executing bank

Unless the letter of credit stipulates that it is executed by the issuing bank, it must indicate the executing bank.

Unless the executing bank is not being the confirming bank, the obligations to examine documents and execute the letter of credit may be imposed on such bank only on the basis of the instructions of the issuing bank.

Unless the executing bank is not being the confirming bank, the beneficiary is entitled to present demands arising out of the letter of credit only to the issuing bank.

Article 263. Legal status of advising bank

The advising bank’s obligations under a letter of credit are limited toward checking the apparent authenticity of the notice on opening (amending) the letter of credit and forwarding it without delay to the party to which it is addressed.

When the advising bank refuses to advise a letter of credit, it shall notify the party from which the letter of credit was received to that effect not later than on the banking day following the day of receipt of the letter of credit.

Article 264. Relations between beneficiary and applicant

A letter of credit is independent on the existence, modification, or termination of obligations between the beneficiary and the applicant.

If a letter of credit is not executed, the beneficiary is entitled to approach the applicant with corresponding demands, unless the beneficiary’s demands imply otherwise.

Article 265. Termination of issuing bank’s obligations under letter of credit

Obligations of the issuing bank under a letter of credit terminate:

upon execution of the letter of credit;

upon non-presentation of documents in compliance with the terms and conditions of the letter of credit within the period for which the letter of credit was opened;

upon the beneficiary's waiver of its rights under the letter of credit;

upon revocation by the issuing bank of the letter of credit if it is determined as revocable.

If the issuing bank’s obligations under a letter of credit terminate on grounds stipulated by indents three and four of part one of this Article, the issuing bank is obliged to remit to the applicant the monetary means made available for the execution of the letter of credit, not later than on the banking day following the day of occurrence of the said grounds or of return of monetary means from the executing bank.

Article 266. Domestic and international letters of credit

A letter of credit is deemed to be domestic if residents act as the issuing bank and the beneficiary. Specifics of executing domestic letters of credit are determined by the National Bank.

A letter of credit is deemed to be international if any of the parties involved in settlements under the letter of credit is a non-resident. When executing international letters of credit, the parties shall abide by norms of treaties, international rules and practices in the sphere of letters of credit, as well as by norms of law applicable to international letters of credit.

International rules and practices may apply to domestic letters of credit in cases where a reference is made thereto in the text of the letter of credit.

Unless otherwise stipulated by the parties, the law of the issuing bank is considered are applicable to international letters of credit of relations between the issuing bank and the applicant, the issuing bank and the advising bank or the executing bank, as well as between the advising bank or the executing bank and the beneficiary.

Article 267. Concept and forms of collection

Collection means the handling by banks of documents, in accordance with instructions of a customer which results in delivery to a drawee of financial documents not accompanied by commercial documents (clean collection) or of financial documents accompanied by commercial documents or only commercial documents (documentary collection) in order to obtain payment and/or acceptance of the payment or on other terms and conditions.

Collection is handled by a bank (remitting bank) upon instructions of a customer (principal) or in its own behalf. In the processing the collection alongside the remitting bank may be involved any other bank (collecting bank). A bank making presentation of documents to the drawee is the presenting bank.

Financial documents are understood to be documents written out with a view of fulfilling obligations in monetary form.

Commercial documents mean transport documents, invoices, documents of title and other documents, not being financial documents

The presenting bank is entitled to debit the drawee’s account subject to delivery of documents with the consent of the drawee (by-acceptance form) or without the consent of the drawee (without-acceptance form). The conditions under with a without-acceptance form of the collection is allowed, and different forms of acceptance (prior acceptance or subsequent acceptance) are used, are determined by legislation of the Republic of Belarus, including normative legal acts of the National Bank as well as by agreements between the drawee and the presenting bank.

Certain types of collection based on tax, administrative, and other relationships are regulated by this Code, unless otherwise stipulated by special legislation of the Republic of Belarus.

Specifics of document circulation and certain types of collection are determined by legal normative acts of the National Bank.

Article 268. Duties of remitting bank

The remitting bank is obliged to take up from the principal collection order (application) and documents specified in the collection order (application), examine accuracy of the completion of the collections order (application) and availability of documents specified in it. When the collection order (application) are duly completed and documents specified in it are available, the remitting bank forwards the documents received for the collection to the presenting bank or to the drawee, if the remitting bank exercises functions of the presenting bank, not later than on the banking day following the day of their delivery or within other period specified in the collection order (application).

The remitting bank is not liable to the principal for the refusal of the drawee to pay against financial documents. In case of such refusal the remitting bank is obliged to notify without delay the principal to this effect and send to it the returned financial documents.

Article 269. Duties of presenting bank

Under the by-acceptance form of the collection, the presenting bank is obliged to notify the drawee of the principal’s requirements and/or present documents to the drawee not later than on the banking day following the day of receipt of documents for the collection on within other period of time specified in the received instructions.

The presenting bank is not liable to the principal for refusal of the drawee to accept presented documents.

Under the without-acceptance form of the collection, the presenting bank is obliged to verify the apparent authenticity of presented financial documents and remit the amount being recovered to the remitting bank on the day of delivery of the documents or on the next banking day if they are delivered after the end of the banking day.

If monetary means on the payer's account are insufficient, the actions of the presenting bank are determined by normative legal acts of the National Bank unless otherwise established by legislative acts of the Republic of Belarus.

Article 270. Liability of presenting bank

If the collection is delayed through the fault of the presenting bank, the principal has the right, regardless of availability of contractual obligations, to bring an action directly against the presenting bank.

Article 271. Specific features of international collection

Collection is deemed to be international if at least one party involved in settlements under the collection is non-resident.

Specifics of international collection are determined by norms of treaties, international rules and practices, as well as norms of law applicable to international collection.

Unless otherwise determined by the parties, applicable to international collection is:

law of the remitting bank’s state - with respect to relations between the principal and the remitting bank; and

law of the presenting bank’s state – with respect to relations between the remitting bank, drawee, other bank, and the presenting bank.

Article 272. [Excluded]

Article 273. Bank payment card

A bank payment card is a payment instrument that provides access to a bank account, accounts for record keeping of deposits, credits of a natural or legal person to obtain cash monetary means and carry out settlements in a non-cash form, and also ensuring conducting of other operations in accordance with the legislation of the Republic of Belarus.

Issuance (emission) of bank payment cards, settlement and/or cash services of natural and/or legal persons using bank payment cards and/or their details (acquiring) held by the bank on the basis of a license to carry out banking activities.

The order of issuance into circulation (emission) of bank payment cards and conducting acquiring is established by the National Bank.

Article 274. Electronic money

Electronic money is electronically stored units of value issued into circulation in he exchange for cash and non-cash monetary means and accepted as a means of payment when carrying out settlements with both a person who issued into circulation of these units of value and other legal and natural persons, and also expressing the sum of obligation of such person on the return of monetary means to any legal person or natural person upon presentation of these units of value.

Issuance (emission) of electronic money are carried out by a bank on the basis of the license to carry out banking activities.

The order of issuance (emission) of electronic money shall be established by the National Bank.

Article 275. Legal regulation of settlements in cashless form

Procedure for effecting settlements in a cashless form in the territory of the Republic of Belarus are established by this Code and normative legal acts of the National Bank.

CHAPTER 25
FOREIGN CURRENCY EXCHANGE OPERATIONS

Article 276. Foreign currency exchange operations

Foreign currency exchange operations are:

operations involving exchange of a foreign currency for the official monetary unit of the Republic of Belarus and/or exchange of the official monetary unit of the Republic of Belarus for a foreign currency at established exchange rates (foreign currency trading);

operations involving exchange of one foreign currency for another foreign currency at established exchange rates (foreign currency conversion); and

other operations determined by the National Bank.

Article 277. Procedure for performance of foreign currency operations

In the territory of the Republic of Belarus foreign currency operations are carried out through banks and non-bank credit and financial organizations that have licenses to carry out banking activities conceding the right to perform such operations.

Foreign currency trading and/or conversion may be carried out at foreign currency exchanges and at off-exchange currency market.

The National Bank may establish limits of exchange rates at which foreign currency trading and/or conversion of foreign currency is carried out in the domestic currency market.

The procedure for currency exchange operations is established by the National Bank.

CHAPTER 26
BANK SAFEKEEPING. TEMPORARY USE OF BANK STRONGBOX

Article 278. Bank safekeeping contract

Under a bank safekeeping contract, one party (bailee) undertakes, for a fee, to provide safekeeping of documents and valuables delivered to it by another party (bailor) and redeliver them to the bailor intact.

Under a bank safekeeping contract, a bank and non-bank credit and financial organization may act as a bailee.

Relationships regarding safekeeping are regulated by this Code and civil legislation.

Article 279. Bank safekeeping items

The bailee may take up from the bailor monetary means, securities, precious metals, precious and semiprecious stones, and other valuables as well as documents (hereinafter - bank safekeeping items) for safekeeping.

Article 280. Form of bank safekeeping contract

A bank safekeeping contract shall be concluded in a written form. At that, the simple written form of a bank safekeeping document is deemed to be complied with if the acceptance of documents and valuables for safekeeping is evidenced by the bailee through issuance to the bailor of a personal safekeeping document. The presentation of such document constitutes a ground for redelivery of bank safekeeping items to the bailor.

Article 281. Types of bank safekeeping

Bank safekeeping may be close, strongbox or open.

Article 282. Close safekeeping

Close bank safekeeping is a type of bank safekeeping whereby safekeeping of bank safekeeping items is effectuated by providing the bailor with an individual bank strongbox (strongbox cell, separate room in a bank, non-bank credit and financial organization) safeguarded by the bailee. The bailee ensures for a bailor a possibility to place bank safekeeping items into the individual strongbox and to take them out of the box without anyone’s control, including the control of the bailee.

Article 283. Strongbox bank safekeeping

Strongbox bank safekeeping is a type of bank safekeeping whereby safekeeping of bank safekeeping items is effectuated by providing the bailor with an individual bank strongbox (strongbox cell, separate room in a bank, non-bank credit and financial organization) safeguarded by the bailee. The bailee effectuates control over placement by the bailor of bank safekeeping items into the individual strongbox and their withdrawal from the box.

Article 284. Open bank safekeeping

Open bank safekeeping is a type of bank safekeeping whereby the bailee undertakes to safeguard bank safekeeping items of the bailor and to return them in an unchanged state at the expiry of the bank safekeeping contract.

Under open bank safekeeping, bank safekeeping items of different bailors are kept separately, without being sealed, with indication of the name of each bailor.

Article 285. Verification of bailor’s identity

In accordance with a bank safekeeping contract, the identity of a bailor may be verified by communicating a code or by presentation of an identity document or identity card, or key, or other sign or a document.

Article 286. Providing individual bank strongbox to another person for temporary use

Relationships concerning the provision by banks and non-bank credit and financial organizations of individual bank strongboxes (strongbox cells, separate rooms in a bank, non-bank credit and financial organization) for temporary use of another person without their liability for the preservation of content of the strongboxes are regulated by dispositions of civil legislation on the lease contract insofar it does not contradict the essence of such bank relationships.

CHAPTER 27
COLLECTION AND CARRIAGE OF CASH MONETARY MEANS, PAYMENT INSTRUCTIONS, PRECIOUS METALS AND PRECIOUS STONES AND OTHER VALUABLES

Article 287. Collection and carriage of cash monetary means, payment instructions, precious metals and precious stones and other valuables

Collection of cash monetary means, payment instructions, precious metals and precious stones and other valuables means collecting such valuables from cash registers of legal persons and individual entrepreneurs and their delivery to cash departments of banks and non-bank credit and financial organizations, carried out on the basis of a contract by collection services of banks and non-bank credit and financial organizations.

Carriage of cash monetary means, payment instructions, precious metals and precious stones and other valuables means carriage of such valuables between banks and non -bank credit and financial organizations, their separate and structural divisions, as well as delivery of such valuables to clients of banks and non-bank credit and financial organizations.

Banks and non -bank credit and financial organizations which carry out collection and/or carriage of cash monetary means, payment instructions, precious metals and precious stones and other valuables have the right to:

acquire, in the order established by normative legal acts of the President of the Republic of Belarus and other legislative acts of the Republic of Belarus, civil and service weapons and ammunition for it to be used respectively by employees of their collection services and employees duties of which include carriage of cash monetary means, payment instructions, precious metals and precious stones and other valuables;

receive, in the order stipulated by the President of the Republic of Belarus, into lease some types and models of military weapons and ammunition for them to be used by employees of collection services to fulfil duties imposed on them.

Handing out weapons and ammunition to employees of collection service is performed on a decision of heads of banks and non-bank credit and financial organizations after the said employees have received relevant training and when there are no obstacles for issuance to them of a permission to acquire civil weapons.

Employees of collection service are provided with uniform, footwear, weapons equipment and individual protection means in the order established by legislation of the Republic of Belarus.

Article 288. Conditions and limits of the use of physical force, application and use of weapons

Employees of the collection service, when performing their duties on collection and transportation of monetary means, payment instructions, precious metals and precious stones, and other valuables, have the right to use physical force, apply and use weapons, if otherwise it is impossible to fulfil their duties.

The use of physical force and weapons must be preceded by a warning on the intention to use them, evident and obvious for a person against whom they are applied, giving sufficient time to execute legitimate demands, with the exception of the cases when the delay in applying weapons or physical force will create an immediate danger to life of citizens and can entail other serious consequences.

In all cases when the use of physical force and weapons cannot be avoided, the employees of collection service are obliged to take all possible measures for ensuring safety of citizens and seek to cause the least possible harm to their health, honour, reputation and property, and also to take measures on immediate medical and other assistance to the victims.

The employees of the collective service are obliged to bring immediately every case of the use of physical force and weapons to notice of the head of the collection service or his deputy, and in case of causing harm to person’s health – also immediately (not later than within a day) report the incident to bodies of internal affairs according of the place where weapons were applied.

Employees of the collection service are not liable for harm caused by them when applying physical force, applying and/or using weapons, if they were applied and/or used in cases provided by this Code and other legislative acts of the Republic of Belarus, and there was no excess of measures necessary to apprehend persons committing unlawful assaults, excess of limits of justifiable defence or violation of conditions of legitimacy of extreme necessity.

Article 289. Application of physical force

Employees of the collection service have the right, when fulfilling duties, to apply physical force, including military style fight and self-defense techniques for prevention and suppression of offences, apprehending persons who committed them, in the case of counteraction of legitimate demands of employees of the collection service, if the non-violent methods do not ensure the fulfilment of duties.

Article 290. Application and use of weapons

Employees of the collection service, when fulfilling duties, have the right to use weapons, as a last resort, for:

protection of cash monetary means, payment instructions, precious metals and precious stones and other valuables, which have been collected or are being transported, from an assault perpetrated in order to seize them;

self-defense against an assault that threatens the life or health of the employees of the collection service, including an assault of a group or assault coupled with the use of weapons or explosions, arsons and other dangerous methods, use of vehicles, machinery or equipment against employees or service vehicles of the collection service;

prevention of seizing weapons of the employees of collection service;

freeing of collection service employees or other persons who are responsible for accounting, receiving, storing and handing out of cash monetary means, from captivity or retention as hostages;

detention of persons who offer armed resistance to the collection service employees or refuse to fulfil their legitimate demands to surrender weapons, if it is impossible to detain these persons, suppress their resistance or confiscate weapons, in other ways or by other means.

The collection service employees have the right to use weapons for:

making a signal of alarm or help;

warning about intention to use weapons;

neutralizing an animal directly threatening the life or health of an employee of the collection service and/or another citizen;

training purposes.

The use of weapons shall not endanger life and health of citizens.

The collection service employees are prohibited to apply or use weapons:

when there is a considerable concentration of people, and third persons can be affected;

in the direction towards flammable, explosive warehouses and storage facilities or warehouses and storage facilities containing highly toxic substances;

towards women, citizens with obvious signs of disability, minors when their age is obvious or known, with the exception of the cases when the mentioned citizens commit armed or group assault or other actions which threaten life or health of the collective service employees and other persons.

 

President of the Republic of Belarus

A. Lukashenko

 

* unofficial translation *

 

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